Executive Summary

Q3 2025 delivered resilient operating performance with 3.3M SF of leasing, 1.9M SF positive net absorption, same-property ending occupancy up 60 bps sequentially to 96.8%, and Core FFO per diluted share of $0.60 . Revenue slightly beat consensus while GAAP EPS and EBITDA came in modestly below Street expectations; management raised full-year Core FFO guidance midpoint to $2.40 .
Guidance shifts: Net income per diluted share raised to $1.44–$1.46 (from $1.38–$1.42), Core FFO per diluted share to $2.39–$2.41 (prior $2.37–$2.41); same-property cash NOI growth raised to 3.75–4.25% (from 2.25–2.75%); net interest expense reduced to ~$105M (from ~$107M) .
Capital allocation: $53.6M dispositions in Q3 (YTD $187.6M) and $150M share repurchases at $38.62 avg; Board authorized new $500M program with $450M remaining at quarter-end . Balance sheet remains conservative: $1.6B liquidity, no floating-rate debt exposure, net debt/Adjusted EBITDAre of 4.1x .
Stock reaction catalysts: raised guidance, stronger leasing spreads (26.1% net effective; 10.3% cash) and occupancy, accelerated buybacks, and portfolio outperformance vs broader Southern California infill market, tempered by modest redevelopment yields and ongoing macro/tariff uncertainty .

What Went Well and What Went Wrong

What Went Well

Record leasing and absorption: 3.3M SF leased; 1.9M SF positive net absorption; comparable leasing spreads of 26.1% (net effective) and 10.3% (cash). “Our team continues to execute at a high level… outperforming the broader infill market.” .
Sequential occupancy improvement and guidance raise: same-property ending occupancy +60 bps q/q to 96.8%; Core FFO per diluted share guidance midpoint raised to $2.40 on stronger leasing, accretive capital recycling, and higher capitalized interest .
Capital recycling and buybacks: $53.6M Q3 dispositions (YTD $187.6M) funding $150M repurchases; new $500M program authorized, underscoring disciplined capital allocation focus .

What Went Wrong

Redevelopment yields mixed: seven projects stabilized at a weighted average unlevered yield of 4.4% in Q3 (below historical average); management acknowledged some stabilized yields not meeting initial expectations due to market rent declines .
Mark-to-market pressure: management cited negative 1% cash mark-to-market and potential pressure on releasing spreads into 2026–2027, despite mitigants (staggered maturities, pipeline NOI, capital recycling) .
Macro and tariff uncertainty: management remains cautious on demand trajectory; improvement observed, but timing of rent inflection remains uncertain given broader macro/geopolitical context .

Financial Results

Headline P&L and Per-Share Metrics

Metric	Q1 2025	Q2 2025	Q3 2025
Total Revenues ($USD)	$252,287,000	$249,507,000	$253,242,000
Net Income per Diluted Share ($)	$0.30	$0.48	$0.37
Company Share of Core FFO per Diluted Share ($)	$0.62	$0.59	$0.60
Adjusted EBITDAre ($USD)	$184,859,000	$184,111,000	$182,624,000

Operating KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
Same-Property Ending Occupancy (%)	95.7%	96.1%	96.8%
Leasing Activity (Total SF)	2,394,349	1,698,993	3,265,145
Comparable Net Effective Rent Change (%)	23.8%	20.9%	26.1%
Comparable Cash Rent Change (%)	14.7%	8.1%	10.3%
Net Operating Income (NOI) ($USD)	$193,560,000	$186,270,000	$188,878,000
Cash NOI ($USD)	$178,857,000	$173,564,000	$175,460,000

Estimates vs Actual (S&P Global)

Values marked with an asterisk are from S&P Global; Values retrieved from S&P Global.

Metric	Q3 2025 Consensus*	Q3 2025 Actual*	Outcome
Revenue ($USD)	$251,001,450*	$253,242,000*	Beat
Primary EPS ($)	$0.3100*	$0.2468*	Miss
EBITDA ($USD)	$171,657,090*	$169,841,000*	Miss

Note: Company-reported Q3 total revenues were $253,242,000 and Adjusted EBITDAre was $182,624,000; Core FFO per diluted share was $0.60 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Income Attributable to Common Stockholders per Diluted Share ($)	FY 2025	$1.38–$1.42	$1.44–$1.46	Raised
Company Share of Core FFO per Diluted Share ($)	FY 2025	$2.37–$2.41	$2.39–$2.41	Raised (midpoint)
Same-Property NOI Growth — Net Effective (%)	FY 2025	0.75%–1.25%	0.75%–1.25%	Maintained
Same-Property NOI Growth — Cash (%)	FY 2025	2.25%–2.75%	3.75%–4.25%	Raised
Average Same-Property Occupancy (%)	FY 2025	95.5%–96.0%	~96.0%	Raised (midpoint)
General & Administrative Expenses ($)	FY 2025	~$82M	~$82M	Maintained
Net Interest Expense ($)	FY 2025	~$107M	~$105M	Lowered
Dividend per Common Share ($)	Q4 2025	$0.43	$0.43 (authorized Oct 13, 2025)	Maintained

Management cited stronger leasing, accretive dispositions/share repurchases, and higher capitalized interest as drivers of the raise, partially offset by lease-up timing delays in repositioning/redevelopment .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3 2025)	Trend
Occupancy vs Rate Focus	Strategy emphasized driving occupancy and cash flow; average SP occupancy ~95.9% in Q1; ~95.9% in Q2; net effective/cash spreads 23.8%/14.7% (Q1), 20.9%/8.1% (Q2)	Continued focus on occupancy/cash flow; same-property ending occupancy to 96.8%; spreads 26.1%/10.3%; willing to use shorter terms/concessions to capture NOI	Improving activity and occupancy; balanced pricing tactics
Capital Recycling & Share Repurchases	Disposed $134.0M through Q2; liquidity $1.8B; no acquisitions; buyback program active	Q3 dispositions $53.6M (YTD $187.6M); $150M buybacks quarter; new $500M program authorized	Acceleration of dispositions and buybacks
Redevelopment/Repositioning Yields	Q1–Q2 stabilizations at ~7–7.6% yields	Q3 stabilizations at 4.4% average; management acknowledges yields below expectations amid rent declines; pipeline still contributes $12M annualized NOI	Mixed near-term yields; pipeline NOI accrual continues
Bad Debt & Credit	Q2 bad debt negligible $0.1M; tenant health resilient	Q3 bad debt effectively zero; cautious reserve of ~~70 bps (~~$1.7M NOI) for Q4 as precaution	Stable; cautious stance for Q4
Market Rents & Tariffs/Macro	Macro/tariff uncertainty; conservative posture	Sequential market rent decline moderating (-1% for REXR vs -2% market); confidence in long-term supply constraints; timing of inflection uncertain	Stabilizing trend; uncertainty persists
Mark-to-Market & Releasing Spreads	Healthy spreads in Q1/Q2	Cash mark-to-market ~-1%; potential pressure in 2026–2027; mitigants: staggered expirations, pipeline NOI, recycling, margin discipline	Watch area; mitigants in place
G&A & Operating Leverage	Emphasis on operating leverage; zero YTD G&A growth vs NOI growth	Continued focus on efficiency/re-org to drive margins	Positive leverage trajectory

Management Commentary

“Third quarter results, which were ahead of expectations, are a testament to the strength of our business model… We executed 3.3 million square feet of leasing… our portfolio continues to outperform the broader infill market” — Laura Clark (COO) .
“We are raising our full-year 2025 core FFO per share midpoint to $2.40… driven by strong leasing activity, accretive capital recycling… and higher capitalized interest; partially offset by projected lease-up delays” — Mike Fitzmaurice (CFO) .
“Our strategic disposition program funded $150 million of accretive share repurchases… underscoring disciplined capital allocation” — Co-CEOs .
“Bad debt levels are below historical averages at 30 bps of revenue YTD… tenant health remains resilient” — Management .
“While we cannot predict when market rents will reach an inflection point… underlying supply-demand dynamics remain strong” — Co-CEO commentary .

Q&A Highlights

Leasing sustainability: Management noted record 3.3M SF leased with activity across ~80% of vacant spaces; encouraged but mindful of macro/tariff uncertainty impacting demand visibility .
Occupancy vs rate: Priority remains driving occupancy and cash flow, using term/concessions selectively; buildings’ quality and proactive asset management underpin outperformance .
Dispositions and pipeline: ~$160M under contract/LOI; disciplined recycling to strengthen quality/growth and reduce risk; managing redevelopment/repositioning exposure within 5–7.5% comfort range of portfolio SF .
Mark-to-market: Cash MTM at ~-1%; possible releasing spread pressure into 2026–2027; mitigants include staggered maturities (<15% rent roll per year), pipeline NOI, capital recycling, margin actions .
Redevelopment yields: Q3 stabilizations at ~4.4% below initial expectations due to rent declines; future capital decisions will be paused or sold if not meeting criteria .
G&A: Operating leverage in focus; zero G&A growth vs ~17% NOI growth last year; reorg and workforce actions support margin discipline .

Estimates Context

Q3 2025 consensus vs actual: Revenue beat ($253.24M actual vs $251.00M estimate); Primary EPS missed ($0.2468 actual vs $0.3100 estimate); EBITDA missed modestly ($169.84M actual vs $171.66M estimate)*. Values retrieved from S&P Global.
REIT-relevant metric Core FFO per diluted share was $0.60; Street Core FFO estimates were not available via our S&P Global pull for this recap .
Near-term estimate revisions likely to reflect: higher same-property cash NOI guidance, lower net interest expense, and share count reduction post $150M buybacks; partially offset by lease-up timing delays and moderated redevelopment yields .

Key Takeaways for Investors

Guidance raised with improving same-property cash NOI and lower interest expense; buybacks and dispositions are accretive levers supporting per-share growth .
Leasing momentum and occupancy recovery are tangible, with healthy spreads and record net absorption; pipeline NOI provides visibility despite rent inflection timing uncertainty .
Redevelopment yields moderated; expect more rigorous capital selection (pause/sell paths) to optimize risk-adjusted returns in current rent environment .
Balance sheet remains conservative with $1.6B liquidity, fixed-rate debt, and net debt/Adjusted EBITDAre at 4.1x, enabling opportunistic capital deployment .
Cash mark-to-market and 2026–2027 releasing spread pressure are watch items; mitigants include staggered lease expirations (<15% per year), ample embedded NOI, and ongoing capital recycling .
Tactical stance: favor near-term catalysts (buybacks, guidance raise, leasing) while monitoring macro/tariff headlines and redevelopment economics; positioning should consider potential estimate upgrades on cash NOI and interest expense, and sensitivity to mark-to-market .

Rexford Industrial Realty, Inc. (REXR)·Q3 2025 Earnings Summary