Rexford Industrial Realty Q3 results hit by drop in rental rates

Overview

• US industrial REIT's Q3 revenue and net income declined, Core FFO per share was flat yr/yr

• Company sold $1.3 bln in properties and repurchased $408.7 mln in shares

• Same Property Portfolio NOI fell due to rental rate compression, lower occupancy, and higher bad debt

Outlook

• Company raises 2026 Core FFO per share guidance to $2.41-$2.44 from $2.38-$2.43

• Company expects 2026 net loss per diluted share of $1.55-$1.52

• Company forecasts 2026 Same Property Portfolio NOI growth (net effective) of (0.25)% to 0.25%

Result Drivers

• RENTAL RATE COMPRESSION - Co said lower rental rates, reduced occupancy and higher bad debt expense drove decline in Same Property Portfolio NOI

• CAPITAL RECYCLING - Co said capital recycling and lower general and administrative expense supported Core FFO per share

• LEASING ACTIVITY - Co said strong leasing activity included repositioning and development leases, with net effective rents up but cash rents down

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy."

• Wall Street's median 12-month price target for Rexford Industrial Realty, Inc. is $40.00, about 8.7% above its October 21 closing price of $36.80

• The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 30 three months ago

Reuters Recommended Reads

• Oct 21 - First Industrial Realty Trust Q3 revenue slightly beats estimates on higher rental rates

• Oct 21 - EastGroup Properties Q3 FFO per share rises 7.9% on rent increase

• Oct 20 - Agree Realty Q3 net income per share up 18.5%; raises FY26 AFFO guidance

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)