Rexford Industrial Realty provided an operating, disposition, and capital markets update for the third quarter to date, reporting strong leasing activity in July and August. The company executed approximately 1.1 million square feet of new and renewal leases, with comparable rental rates increasing by 20.0% net effective and 10.0% cash.
The company successfully leased up over 400,000 square feet of repositioned and redeveloped assets, maintaining double-digit leasing spreads. This indicates continued demand for its high-quality industrial spaces in infill Southern California markets.
In the third quarter to date, Rexford Industrial sold two properties totaling 76,000 square feet for $32.0 million, generating a weighted average unlevered IRR of 12.4%. Year-to-date through August 31, the company disposed of five properties totaling 412,000 square feet for an aggregate sales price of $166.0 million, achieving a weighted average unlevered IRR of 12.0%.
In a significant capital markets move, the company repurchased 2,697,100 shares of common stock for $100.0 million at a weighted average price of $37.08 per share during July and August. The Board of Directors authorized a new $500 million share repurchase program, superseding and replacing the prior $300 million program, signaling an increased commitment to returning value to shareholders.
Additionally, in July, Rexford Industrial repaid its $100.0 million unsecured senior note, which bore an interest rate of 4.29%, using cash on hand. This debt repayment further strengthens the company's balance sheet and reduces its interest expense, enhancing financial stability.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.