Real estate investment trust Rexford Industrial reported a net income of $87.1 million for the third quarter, compared to $65.1 million a year earlier — an increase of about 34 percent.
That is less than the $113.4 million the Los Angeles-based firm reported the prior quarter, but the Southern California industrial market has cooled off recently.
The $10 billion company did not say much about its relationship with Paul Singer’s hedge fund Elliott Management in its earnings call Thursday. The activist investor reportedly has built an active stake in Rexford, making it one of the top five investors.
Rexford only said “yes have met with Elliott, and we have a constructive dialogue, as we encourage with all of our shareholders.” When asked again, the company said it isn’t in a position to comment on the nature of those discussions.
Nonetheless, Rexford executed 3.3 million square feet of new and renewed leases in the quarter, according to an earnings release.
Rexford offloaded three properties, two in Los Angeles County, for $53.6 million: one, at 8542 Slauson Avenue, cost $17.3 million, and another at 15715 Arrow Highway, cost $21.6 million. The latter property was supposed to be redeveloped but was instead sold to the in-place tenant.
The company has sold six properties so far this year for $187.6 million. It has another $160 million of dispositions under contract or accepted offer. But Rexford currently has no acquisitions, a shift from its buying spree of a few years ago.
Revenues increased to $253.2 million in the three months ended Sept. 30, compared to $241.8 million last year.
In Los Angeles County, where more than half of Rexford’s holdings are — 260 properties per its latest financial statement — the industrial vacancy rate is 5 percent. The vacancy rate for Rexford’s holdings in the area is about 9 percent. During its earnings call, the company mentioned an uncertain macroeconomic environment and the president’s tariff policies as affecting tenant demand.
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