Rexford Industrial Realty, Inc.

Second-quarter core FFO per share was $0.63, $0.02 above the first quarter. Same-property NOI growth was 1.5% on a cash basis and -0.5% on a net effective basis, both ahead of expectations. Same-property ending occupancy was 95.1%, up 30 basis points year over year. Net debt to adjusted EBITDA was 4.5x at quarter-end, and total liquidity was $1.3 billion. Management raised full-year core FFO per share midpoint guidance by $0.01, increased same-property NOI growth guidance by 75 basis points at the midpoint, raised average same-property occupancy guidance to 95.3% to 95.7%, lowered 2026 interest expense guidance to $105 million, and reduced G&A guidance to $57 million from an original $60 million target. The company expects to dispose of $1.5 billion to $2 billion of assets in 2026, use $1 billion of proceeds to repay 2027 debt, and end up at about 3.5x net debt to adjusted EBITDA versus 4.5x today.

Laura Elizabeth Clark framed the quarter as one of strong execution and said Rexford is acting decisively on a comprehensive portfolio realignment to improve cash flow durability and portfolio quality. She emphasized that the $2 billion of non-core assets identified for sale have shorter leases, more supply exposure, and rents more than 20% above market, while the retained core portfolio should drive outsized FFO and NAV per share growth. Her tone was confident and strategic, stressing that the company is taking advantage of a valuation gap between private and public markets and is acting with discipline, conviction, and speed.

Michael Fitzmaurice focused on capital allocation, leverage, and the mechanics of the disposition plan. He said the company expects $1.5 billion to $2 billion of dispositions, plans to use $1 billion to pay down 2027 maturities, and believes net debt to adjusted EBITDA can fall to about 3.5x from 4.5x today. He also highlighted $0.63 core FFO per share, $1.3 billion of liquidity, $105 million of 2026 interest expense guidance, $57 million of G&A guidance, and $100 million of share repurchases year to date, bringing 12-month buybacks to about 15 million shares for $550 million, or about 6% of shares outstanding.

Analysts pressed management on whether the planned dispositions would be dilutive or accretive in 2027, what cap rates they expect, and whether a special dividend could be needed. Management said the transaction should be neutral to accretive, that pricing would likely be disclosed when deals close, and that no special dividend is needed because tax losses should offset gains. Analysts also asked about the mismatch between improving market vacancy and Rexford’s occupancy decline; management said the decline was driven by a few larger move-outs, including one bankruptcy-related move-out, and expects occupancy to rebound later in the year.