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Rexford plans up to $2B in 2026 property dispositions to cut 2027 debt
Rexford increased its 2026 disposition guidance to $1.5B to $2B and said it targets debt paydown using proceeds from properties it deemed noncore.
Rexford Industrial Realty plans to dispose of up to $2.0B of properties from its portfolio, using sale proceeds to pay down debt that is set to mature in 2027, according to second-quarter filings submitted to the Securities and Exchange Commission. The REIT raised its full-year 2026 disposition guidance to $1.5B to $2.0B from earlier expectations of $400M to $500M.
Rexford said an extensive portfolio review in the first half of the year identified about 8M square feet of space, representing roughly $2B in assets, that it believes do not align with its long-term strategy. In its discussion with investors, Rexford pointed to factors including limited value creation opportunity, elevated competitive supply, shorter remaining lease durations, and in-place rents that are substantially above market.
The planned sales would be a meaningful slice of the REIT’s scale, with Rexford citing a portfolio of about 50M square feet of rentable space, meaning an 8M square feet sale would represent about 16% of the portfolio. This year, Rexford has sold 12 properties totaling approximately 886K square feet and $265.3M, including six sites previously in the near-term development pipeline, and seven sales worth about $138M occurred in the second quarter.
Rexford said it is in advanced discussions on a substantial portion of the planned sales. The disposition plan contributed to a Q2 net loss attributable to common stockholders of $506.9M, driven by a noncash impairment from the sales, while management said it is taking the impact now to avoid a later one, with $1B of projected proceeds allocated toward 2027 debt paydown. The REIT also reported 117 leases signed in the second quarter for 2.1M square feet, with average same-property occupancy of 95.7%.