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Rexford Industrial flags about $2B in noncore asset sales
Rexford expects roughly $1B of sale proceeds to repay debt maturing in 2027 instead of refinancing.
Rexford Industrial Realty said it is accelerating its shift toward selling “noncore assets,” identifying about $2 billion of properties for disposition, a move CEO Laura Clark described during the REIT’s earnings call.
The company said the disposition pool totals about 8 million square feet and includes assets with limited value creation potential, shorter lease terms, and rents generally more than 20 percent above market. Rexford also raised its property sales outlook to a new range from prior guidance of $400 million to $500 million.
Rexford Chief Financial Officer Michael Fitzmaurice said about $1 billion of the anticipated proceeds will repay debt maturing in 2027 rather than refinance in a higher rate environment, while the rest of proceeds will be guided by market conditions. The REIT added that the vast majority of expected sales are planned to close before the end of the year.
Rexford reported a net loss attributable to shareholders of $506.9 million, compared with net income of $87.9 million in the first quarter and $113.4 million in the second quarter of 2025, including $624.8 million in noncash impairment charges tied to properties whose expected holding periods were shortened after being set for sale. In the quarter, the company sold seven properties totaling about 572,000 square feet for $137.9 million, after disposing of five properties for $127.4 million in the first quarter.