Rexford Industrial Closes $1.2 Billion Portfolio Sale

Rexford Industrial Realty, Inc. (NYSE: REXR) announced the closing of a transaction involving the sale of a 22-property industrial portfolio for approximately $1.2 billion. The buyer is an affiliate of EQT Real Estate. This deal constitutes a major component of the company’s previously disclosed $2.0 billion initiative to dispose of non-core assets. The primary objective of this strategy is to enhance portfolio quality, improve the durability of cash flows, and reinforce the strength of the company’s balance sheet.

The sold portfolio comprised 5.2 million rentable square feet, with an average property size of 237,000 square feet. At the time of closing, the assets had a weighted average remaining lease term of 2.7 years. In-place rents were 28% higher than current market rates. The estimated net operating income yield for 2027 was approximately 5.5%. This yield estimate accounts for the expected decrease in rents as leases roll off and anticipated tenant vacancies.

Capital Deployment and Debt Reduction

During the first three quarters of 2026, Rexford Industrial deployed a portion of the proceeds from asset sales to reduce liabilities and buy back equity. The company repaid $485 million in debt and repurchased $205 million in common stock during this period. Year-to-date, total debt repayment reached $492 million, while common stock repurchases amounted to $505 million. Management intends to use remaining proceeds for 2027 debt maturities, opportunistic share repurchases under its $1.0 billion program, and internal repositioning or development projects that offer attractive risk-adjusted returns.

Portfolio Realignment Progress

As of late September 2026, Rexford Industrial has completed $1.5 billion in asset dispositions. This total includes $265 million from previously announced sales, the newly closed $1.2 billion portfolio transaction, and $86 million from other deals closed in the third quarter. This progress places the company within its full-year 2026 guidance range of $1.5 billion to $2.0 billion in total dispositions. The company reaffirmed its 2026 financial guidance originally provided in its second-quarter earnings release on July 23, 2026.

Balance Sheet and Market Position

The estimated net debt to adjusted EBITDA ratio for the end of 2026 is projected to be 3.5x. Rexford Industrial maintains a portfolio of 409 properties totaling approximately 49.9 million rentable square feet as of June 30, 2026. The company focuses on infill Southern California, identifying it as a high-demand, low-supply industrial market. CBRE National Partners West served as the advisor for this specific transaction. Details of the deal are documented in the company’s Form 8-K filed with the U.S. Securities and Exchange Commission.