Rexford Industrial Reports 42% Jump in Profits

Rexford Industrial Realty reported around $113 million in net income in the second quarter of the year, an about 42 percent increase from the same period last year.

The Los Angeles-based industrial real estate investment trust’s revenues ticked up to about $250 million in Q2 compared to around $238 million year-over-year according to the company’s latest quarterly report.

Co-Chief Executives Micheal Frankel and Howard Schwimmer attributed the growth to what they called “the resiliency of our business model in today’s dynamic market environment,” in the earnings release.

“The long-term, superior supply and demand drivers within infill Southern California, our substantial embedded growth opportunity, fortress-like balance sheet and best-in-class team continue to deliver growing value to our stakeholders,” the two executives boasted.

Beyond Rexford’s results, in Los Angeles, Orange County and the Inland Empire industrial vacancies increased, despite steady-to-strong leasing in the second quarter, the latest CBRE reports show.

Frankel didn’t appear deterred by some of that weakness spreading throughout the Los Angeles and Orange County markets during an earnings call Thursday. He explained that eventually they’ll become tremendous markets but are currently adjusting to recent global uncertainty.

Rexford reported that it executed 99 new and renewal leases, totaling 1.7 million rentable square feet and sold two properties for a total sales price of about $82 million: one in Orange County and another in San Diego. The company did see a slight increase in vacancies; it reported a portfolio occupancy rate of 96 percent compared to 97 percent the previous year.

“While leasing activity remains steady and tenant health continues to be solid, macroeconomic and tariff uncertainty are still impacting some tenant decision making — this is putting some pressure on overall demand, impacting rent levels and lease up timeframes,” Rexford COO Laura Clark said on the earnings call.