Rexford Industrial Realty Q3 results hit by drop in rental rates

Rexford Industrial Realty

Thu 21:13

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: ID:nPn3ZBT05a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
 
$239.10 mln
 
Q3 EPS
 
$0.07
 
Q3 Net Income
 
$14.60 mln
 
Q3 Core FFO
 
$132.70 mln
 
Q3 Core FFO Per Share
 
$0.60
 

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)