Executive Summary

Q1 2025 delivered solid fundamentals: Revenue grew 17.8% YoY to $252.3M, GAAP diluted EPS was $0.30, Company Share of FFO/share (NAREIT) was $0.61, and Core FFO/share rose 6.9% YoY to $0.62 .
Versus S&P Global consensus, REXR posted a revenue beat (~$252.3M vs ~$247.0M*) and an FFO/share beat ($0.61 vs ~$0.582*), while GAAP EPS missed primary EPS consensus ($0.30 GAAP vs primary EPS consensus ~$0.274*; S&P “Primary EPS” actual recorded ~$0.243*)—highlighting metric-definition differences for REITs where FFO is the core earnings lens .
Guidance: Raised FY25 GAAP EPS to $1.31–$1.35 (from $1.21–$1.25), maintained Core FFO/share at $2.37–$2.41, and reduced net interest expense to ~$109.5M (from $110.5–$111.5M) .
Operating KPIs remained resilient amid softer market rents: comparable rent spreads +23.8% net effective/+14.7% cash, same-property cash NOI +5.0% YoY, average SPP occupancy 95.9%, retention + backfill 82% .
Potential stock catalysts: confidence in Core FFO outlook despite tariff uncertainty; low-4% cap-rate user sales recycling into 7.6% stabilized yields; balance sheet strength (net debt/EBITDAre 3.9x) and >$1.6B liquidity per call positioning for opportunistic allocation .

What Went Well and What Went Wrong

What Went Well

Strong leasing economics and activity: 2.39M SF executed with comparable rent spreads of +23.8% net effective and +14.7% cash; embedded annual rent steps averaged 3.6% per call commentary .
Capital recycling accretion: Two user sales at low-4% cap rates YTD (~$103M total) vs stabilized yields of ~7.6% on five newly stabilized repositionings; management highlighted outsized incremental returns (~20%) on certain projects .
Balance sheet and liquidity: Net debt/EBITDAre improved to 3.9x; cash and revolver availability provide >$1.5B of capacity, and Fitch affirmed BBB+ with Stable Outlook .

Management quote: “We stabilized five repositioning projects… at a 7.6% unlevered yield and completed 2 dispositions totaling $103 million at exit cap rates in the low 4% area.” — Laura Clark, COO .

What Went Wrong

Market rent softness: REXR’s portfolio market rents declined ~2.8% sequentially and ~9.4% YoY, albeit outperforming SoCal market benchmarks (CBRE) that fell ~4.7% seq and ~12.1% YoY; larger-format (>100k SF) exposure saw more pressure .
New-lease cash spread optics: Reported -5.4% cash spread on new leases (vs renewals +20.2%), largely due to one above-market expiring lease and small comparable sample (~280k SF) .
Tariff-driven demand uncertainty: Activity on ~80% of vacant space (down from ~90%) as some tenants deferred decisions; guidance assumes longer lease-up (9 months vs 8) to reflect potential timing friction .

Financial Results

Income Statement and Per-Share Trend (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Total Revenues ($M)	$241.8	$242.9	$252.3
GAAP Diluted EPS	$0.30	$0.27	$0.30
Company Share of FFO/share (NAREIT)	$0.59	$0.58	$0.61
Company Share of Core FFO/share	$0.59	$0.58	$0.62
Adjusted EBITDAre ($M)	$175.9	$179.3	$184.9

Q1 2025 vs S&P Global Consensus (REIT-relevant lens)

Metric	Consensus	Actual	Surprise
Revenue ($M)	~$247.0*	$252.3	Beat
FFO/share (REIT, NAREIT)	~$0.582*	$0.61	Beat
Primary EPS (GAAP)	~$0.274*	$0.30 (GAAP diluted); S&P “Primary EPS” actual ~0.243*	Mixed (miss on S&P “Primary EPS”; GAAP diluted EPS $0.30)

Values marked with * retrieved from S&P Global.

Segment/Portfolio KPIs

Same-Property Portfolio (SPP) cash NOI +5.0% YoY; SPP NOI +0.7% YoY .
Average SPP occupancy 95.9%; ending SPP occupancy 95.7% .
Leasing spreads: Net effective +23.8%; cash +14.7%; renewals cash +20.2% .
Retention 68%; Retention + Backfill 82% .
Net absorption +125k SF .
Consolidated occupancy 89.6% incl. repositioning; 95.1% ex-repositioning .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Income per diluted share	FY 2025	$1.21–$1.25	$1.31–$1.35	Raised
Company Share of Core FFO/share	FY 2025	$2.37–$2.41	$2.37–$2.41	Maintained
SPP NOI Growth — GAAP	FY 2025	0.75%–1.25%	0.75%–1.25%	Maintained
SPP Cash NOI Growth	FY 2025	2.25%–2.75%	2.25%–2.75%	Maintained
Avg SPP Occupancy	FY 2025	95.5%–96.0%	95.5%–96.0%	Maintained
Net G&A	FY 2025	~+$82.0M	~+$82.0M	Maintained
Net Interest Expense	FY 2025	$110.5–$111.5M	~+$109.5M	Lowered
Common Dividend	Q2 2025	$0.43 (Q1 payout)	$0.43 declared for Q2	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3’24 and Q4’24)	Current Period (Q1’25)	Trend
Market rents and leasing spreads	Q3’24 spreads strong (GAAP +39.2%, cash +26.7%); SPP avg occupancy 96.9% . Q4’24 FY spreads robust; avg SPP occupancy 96.6% FY .	Market rents -2.8% seq, -9.4% YoY; REXR outperforming market declines (CBRE); spreads still healthy (+23.8% NE/+14.7% cash) .	Moderating rents; healthy spreads sustained
Tariffs/macro	Not highlighted in Q3/Q4 releases .	Tenant decision deferrals post tariff announcements; extended lease-up to 9 months in outlook .	New headwind risk noted
Capital recycling	Modest dispositions in 2024 ($44.3M) .	Two user sales (~$103M) at low-4% cap rates; $30M under contract .	More active, accretive
Redevelopment/repositioning	Stabilized yields 6.2%–7.6% on 2024 projects .	Five projects stabilized at 7.6%; incremental returns cited ~20%; $70M incremental NOI expected near-term from 3.2M SF pipeline .	Ongoing driver of growth
Balance sheet/liquidity	Net debt/EV 26.5%, net debt/EBITDAre 4.6x at YE’24 .	Net debt/EV 22.8%, net debt/EBITDAre 3.9x; >$1.6B liquidity per call; credit facility recast underway .	Strengthening; enhanced flexibility

Management Commentary

Strategic focus: “Our differentiated business model and investment-grade balance sheet will continue to afford us the ability to unlock substantial embedded growth” — Co-CEOs in press release .
Operating backdrop: “We executed 2.4 million square feet of leases… net effective and cash rent spreads of 24% and 15%… 82% tenant retention” — Laura Clark, COO .
Macro/tariffs: “Since the recent tariff announcements, we have seen some tenants defer decision-making… guidance anticipates the potential for increased lease-up timing” — Laura Clark .
Outlook discipline: “We are maintaining our full year 2025 core FFO outlook of $2.37 to $2.41 per share… lease-up timing increased to 9 months” — Michael Fitzmaurice, CFO .

Q&A Highlights

Leasing spreads detail: New-lease cash spread (-5%) driven largely by one lease with above-market prior rent and a small comparable sample; renewals remained strong .
Guidance stress test: Bottom-end Core FFO reflects sensitivity to longer downtime (+1 month ≈ $0.01), 10% rent decline + bad debt to 100 bps (≈ $0.01), and SPP occupancy -50 bps (≈ $0.005–$0.01) .
Dispositions: User-driven, unsolicited offers at low-4% cap rates—attractive relative to private-market mid-4% to 5% prints; capital to be recycled into higher-return projects .
Occupancy cadence: SPP ending occupancy to finish FY at ~95.7%; consolidated occupancy expected ~90%–91% as projects enter active repositioning/redevelopment .
Tenant base and 3PLs: Limited 3PL exposure, selective credit underwriting; some 3PLs provide flexible solutions for tenant uncertainty; active negotiation with established counterparties .

Estimates Context

Consensus snapshots (S&P Global): Q1 2025 revenue ~$247.0M vs actual $252.3M (beat); FFO/share (REIT) ~$0.582 vs actual $0.61 (beat); Primary EPS consensus ~$0.274 vs GAAP diluted $0.30 and S&P “Primary EPS” actual ~0.243 (miss on S&P primary EPS metric) — underscores REIT earnings focus on FFO rather than GAAP EPS*.
Forward look: Quarterly FFO/share consensus hovers around ~$0.59–$0.61 for 2H25 into Q1’26; target price mean ~$44.38; recommendation data sparse in feed*.
Values retrieved from S&P Global.

Estimates vs Actuals Detail (S&P Global)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue Consensus ($M)	242.8	244.7	247.0
Revenue Actual ($M)	241.8	242.9	252.3
FFO/share Consensus	0.588	0.584	0.582
FFO/share Actual (NAREIT)	0.59	0.58	0.61
Primary EPS Consensus	0.277	0.268	0.274
Primary EPS Actual (S&P)	0.300 (GAAP diluted)	0.270 (GAAP diluted)	0.300 (GAAP diluted) / 0.243 (S&P Primary EPS)

Values in the consensus and S&P “Primary EPS” rows retrieved from S&P Global.

Key Takeaways for Investors

Core earnings power intact: Maintaining FY25 Core FFO/share outlook despite tariff-related timing uncertainty, supported by embedded growth levers (mark-to-market, 3.2M SF projects in flight) .
Accretive capital recycling: Selling select assets at low-4% cap rates and redeploying into ~7.6% stabilized yields with ~20% incremental returns supports multi-year NOI accretion .
Balance sheet advantage: Net debt/EBITDAre at 3.9x and BBB+ rating offer flexibility to be opportunistic on financing and capital allocation through macro volatility .
KPI resilience: Strong renewal spreads and retention, positive absorption, and SPP cash NOI growth demonstrate durable demand in infill SoCal, even as headline market rents normalize .
Watchlist items: Tariff impacts on leasing timing, large-format (>100k SF) demand/supply dynamics, and any shift in rent escalators (3.6% average in Q1) in specific submarkets .
Short-term trading: Beats on revenue and FFO/share vs consensus, while GAAP EPS optics may vary under S&P “Primary EPS”—investors should anchor on FFO/share for REIT comparability*.
Governance update: Chairman transition planned post-Annual Meeting; continuity via lead independent director’s appointment supports stability .

Additional Data and References

Q1 2025 press release and supplemental metrics (revenues, EPS/FFO, NOI, guidance, KPIs) .
Prior quarters for trend analysis: Q3 2024 and Q4 2024 press releases (revenues, EPS/FFO, leasing spreads, occupancy) .
Earnings call transcript (prepared remarks and Q&A quotes) .