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1. Company Snapshot

1.a. Company Description

Rexford Industrial, a real estate investment trust focused on owning and operating industrial properties throughout Southern California infill markets, owns 232 properties with approximately 27.9 million rentable square feet and manages an additional 20 properties with approximately 1.0 million rentable square feet.

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1.b. Last Insights on REXR

Breaking News: Rexford Industrial Realty, Inc. reported Q4 2025 earnings, with funds from operations (FFO) of $0.59 per share, surpassing the Zacks Consensus Estimate of $0.58 per share. This represents a slight increase from $0.58 per share a year ago. The company's quarterly results were discussed during its earnings call. Analysts have recently provided updates on the stock, with some recommending a buy, while others suggest holding or selling the stock. The earnings release provides insight into the company's performance, with key metrics compared to Wall Street estimates and year-ago numbers.

1.c. Company Highlights

2. Rexford Industrial's Q4 2025 Earnings: A Deeper Dive

Rexford Industrial reported core FFO per share of $0.59 in Q4 2025, driven by higher same-property NOI growth, lower G&A expense, and accretive share buybacks, beating analyst estimates of $0.58. The company's financial performance was solid, with leasing activity totaling 3 million square feet, meeting guidance expectations. Revenue growth is expected to be 3.4% next year, indicating a steady pace.

Publication Date: Feb -10

📋 Highlights
  • Strong Leasing Performance:: Rexford achieved 3 million square feet of leasing in Q4 2025, meeting guidance expectations.
  • Strategic Asset Optimization:: Identified 850,000 sq ft of projects for disposal and plans $400–$500M in 2026 dispositions to redeploy capital into higher-yielding opportunities.
  • Cost Efficiency Gains:: G&A expenses as a percentage of revenue projected to drop to 6% in 2026, below the peer average.
  • FFO Growth Drivers:: Core FFO per share reached $0.59 in Q4 2025, driven by higher NOI and cost reductions, with $20M annualized NOI expected from 1.2M sq ft value-added projects in 2026.
  • Market Rent Trends:: Market rents declined 10 bps QoQ and 9% YoY, with occupancy expected to dip to 95% in 2026 due to lease expirations and concessions.

Operational Highlights

Rexford's portfolio outperformed the broader market, despite near-term pressure, with the company remaining confident in the long-term fundamentals of infill Southern California. The company has implemented strategic priorities to enhance cash flow, drive per-share FFO and NAV growth, and optimize returns for shareholders, including re-underwriting the development pipeline and a programmatic disposition plan targeting $400-$500 million of dispositions in 2026.

Market Conditions and Leasing Activity

Market rents declined 10 basis points in the quarter and 9% year-over-year, with vacancy increasing 30 basis points during the quarter. The company expects to sign leases in the $16.75 to 17 range, with 5% to 10% re-leasing spreads. As Laura Clark noted, "we prioritized occupancy and derisked future cash flow growth by renewing the Tireco lease at market rents," indicating a focus on driving long-term value.

Valuation and Cash Flow

With a P/E Ratio of 43.98 and an EV/EBITDA of 17.74, the market appears to be pricing in a certain level of growth. Rexford's cash same-store guide is expected to be negative 1% to 2% due to a 60 basis point decline in occupancy, lower term fees, and concessions. The company expects to dispose of roughly $450 million of assets, with proceeds redeployed toward higher-risk adjusted returns, and has a significant cash balance of $166 million at the end of 2025.

Capital Allocation and Future Plans

Rexford is focused on driving long-term value and shareholder returns, with a renewed capital allocation discipline, rigorous underwriting criteria, and a programmatic disposition strategy. The company expects to have $413 million in available cash to deploy to the highest risk-adjusted returns in 2026, which could include share repurchases or future repositioning or development, indicating a flexible approach to capital allocation.

3. NewsRoom

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Inflation Is Coming Back - Here's Where I'm Buying Pricing Power

Feb -10

Source: seekingalpha.com

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REIT Replay: U.S. REIT Indexes Climb During 1st Week Of February

Feb -09

Source: seekingalpha.com

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Rexford Q4 Loss Vs. Core FFO — Which Number Tells The Real Story

Feb -09

Source: benzinga.com

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Thrivent Financial for Lutherans Has $4.23 Million Stock Holdings in Rexford Industrial Realty, Inc. $REXR

Feb -08

Source: defenseworld.net

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Rexford Industrial Realty, Inc. (REXR) Q4 2025 Earnings Call Transcript

Feb -05

Source: seekingalpha.com

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Rexford Industrial (REXR) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates

Feb -05

Source: zacks.com

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Rexford Industrial (REXR) Surpasses Q4 FFO Estimates

Feb -05

Source: zacks.com

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Rexford Industrial Announces Fourth Quarter and Full Year 2025 Financial Results

Feb -04

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.81%)

6. Segments

Rental

Expected Growth: 12%

Rexford Industrial Realty's 12% rental growth is driven by increasing demand for logistics and e-commerce facilities, strategic acquisitions, and rent escalations. Additionally, the company's focus on high-growth markets, such as Southern California, and its value-add redevelopment initiatives contribute to its strong growth momentum.

Tenant Reimbursements

Expected Growth: 11%

Rexford Industrial Realty's 11% growth in Tenant Reimbursements is driven by increasing occupancy rates, rising rental income, and strategic acquisitions of high-quality industrial properties. Additionally, the company's focus on providing value-added services to tenants, such as property management and maintenance, contributes to higher reimbursement rates.

Interest Income

Expected Growth: 10%

Rexford Industrial Realty's 10% interest income growth is driven by increasing demand for industrial properties, strategic acquisitions, and rising rents. The company's focus on high-quality, infill locations and its ability to capitalize on the e-commerce boom are also contributing factors. Additionally, Rexford's strong balance sheet and access to capital enable it to pursue accretive investments, further fueling growth.

Other

Expected Growth: 9%

Rexford Industrial Realty's 9% growth is driven by increasing demand for industrial real estate, particularly in the infill and last-mile logistics markets. Strong e-commerce growth, limited supply, and rising rents in coastal markets also contribute to this growth. Additionally, Rexford's strategic acquisitions and development pipeline, as well as its focus on high-barrier-to-entry markets, support its growth momentum.

Management, Leasing and Development Services

Expected Growth: 14%

Rexford Industrial Realty's 14% growth in Management, Leasing and Development Services is driven by strategic property acquisitions, increasing demand for industrial space, and effective asset management. The company's focus on high-quality properties, strong tenant relationships, and value-add opportunities also contribute to its growth. Additionally, Rexford's development pipeline and ability to capitalize on market trends further support its expansion.

7. Detailed Products

Industrial Real Estate Properties

Rexford Industrial Realty, Inc. owns and operates a diverse portfolio of industrial properties, including warehouses, distribution centers, and manufacturing facilities.

Logistics and Distribution Services

Rexford Industrial Realty, Inc. provides logistics and distribution services to help companies manage their supply chain and transportation needs.

Industrial Property Management

Rexford Industrial Realty, Inc. offers property management services to help industrial property owners and investors maximize their returns.

Acquisition and Development Services

Rexford Industrial Realty, Inc. provides acquisition and development services to help companies and investors identify and develop industrial properties that meet their needs.

8. Rexford Industrial Realty, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Rexford Industrial Realty, Inc. operates in a niche market with limited substitutes, reducing the threat of substitutes.

Bargaining Power Of Customers

While customers have some bargaining power, Rexford Industrial Realty, Inc.'s diversified customer base and long-term leases mitigate this risk.

Bargaining Power Of Suppliers

Rexford Industrial Realty, Inc. has a diversified supplier base, reducing dependence on individual suppliers and minimizing their bargaining power.

Threat Of New Entrants

The industrial real estate market is highly competitive, and new entrants can easily enter the market, posing a significant threat to Rexford Industrial Realty, Inc.'s market share.

Intensity Of Rivalry

The industrial real estate market is highly competitive, with many established players, leading to a high intensity of rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 37.19%
Debt Cost 4.63%
Equity Weight 62.81%
Equity Cost 8.44%
WACC 7.03%
Leverage 59.22%

11. Quality Control: Rexford Industrial Realty, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
STAG Industrial

A-Score: 6.5/10

Value: 3.3

Growth: 5.4

Quality: 6.5

Yield: 7.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Terreno Realty

A-Score: 6.2/10

Value: 2.5

Growth: 6.9

Quality: 7.4

Yield: 6.0

Momentum: 6.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Rexford Industrial Realty

A-Score: 6.2/10

Value: 2.8

Growth: 6.9

Quality: 6.2

Yield: 7.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
EastGroup Properties

A-Score: 6.2/10

Value: 1.8

Growth: 6.1

Quality: 6.6

Yield: 6.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
First Industrial Realty Trust

A-Score: 6.2/10

Value: 2.1

Growth: 5.6

Quality: 6.8

Yield: 6.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
LXP Industrial Trust

A-Score: 5.9/10

Value: 3.7

Growth: 2.1

Quality: 5.6

Yield: 9.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

38.23$

Current Price

38.23$

Potential

-0.00%

Expected Cash-Flows