Rexford Industrial Realty, Inc. REXR has completed the sale of a 22-property industrial portfolio to an affiliate of EQT Real Estate for approximately $1.2 billion. The transaction covers 5.2 million rentable square feet, or roughly 237,000 square feet per property, and represents a major part of Rexford’s planned $2 billion portfolio realignment. The company is selling assets it considers non-core to improve portfolio quality, cash-flow durability and balance-sheet strength.
The assets also highlight why Rexford chose to sell now. At closing, the portfolio had a weighted-average remaining lease term of 2.7 years, while in-place rents were 28% above current market rates. The company estimates the portfolio’s 2027 cash NOI yield at about 5.5%, a figure that reflects the anticipated roll down of above-market in-place rents and expected tenant move-outs.
The sale also gives Rexford more room to reshape its balance sheet. During the third quarter through Sept. 17, 2026, the company used disposition proceeds to repay $485 million of debt and repurchase $205 million of stock. Year to date, debt repayments reached $492 million and share repurchases totaled $505 million. Remaining proceeds are expected to support 2027 debt maturities, further repurchases and internal repositioning and development projects. The company's estimated year-end 2026 Net Debt to Adjusted EBITDAre is 3.5x.
This transaction follows several smaller property sales earlier in 2026. In the second quarter of 2026, Rexford sold seven properties totaling about 572,000 square feet for $137.9 million. By June 30, 2026, year-to-date dispositions had reached 12 properties for $265.3 million. The latest update shows another $86 million of third-quarter dispositions, taking total 2026 sales to roughly $1.5 billion and placing Rexford within its $1.5-$2 billion full-year disposition guidance.
Conclusion
Overall, the $1.2 billion portfolio sale represents a major step in Rexford’s broader capital-recycling plan. Management identified about $2 billion of non-core assets for disposition and plans to use proceeds to reduce debt, repurchase shares and fund internal repositioning and development projects. Execution on the remaining sales and successful reinvestment of proceeds will now determine the extent to which the portfolio reset improves future cash-flow growth.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 16.3% against the industry’s decline of 0.9%.
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Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Crown Castle Inc. CCI and Vornado Realty Trust VNO, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CCI’s 2026 FFO per share is pinned at $4.57. This indicates year-over-year growth of 4.8%.
The Zacks Consensus Estimate for VNO’s 2026 FFO per share is pegged at $2.39. This calls for a year-over-year increase of 3%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITS.
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