Rexford Industrial announce reduction in force an organizational restructuring

Rexford Industrial (REXR) Realty outlined the Company’s strategic and financial priorities and actions underway to drive long-term value for shareholders. “I am committed to a reformed capital allocation strategy that aligns with market conditions and our cost of capital, with a clear focus on maximizing risk-adjusted returns and our per-share NAV,” said Laura Clark, COO and incoming CEO of Rexford Industrial. Rexford Industrial is committed to optimizing shareholder returns by prioritizing strong risk-adjusted returns, while maintaining a flexible, investment-grade-rated balance sheet, which will drive FFO per share and net asset value per share growth. The Company will continue to implement its value creation strategy of selectively repositioning assets to generate strong incremental returns and steady cash flows. The development pipeline is being reevaluated to focus on the highest-return opportunities that meet rigorous return thresholds, thereby reducing exposure and mitigating risks associated with market conditions, downtime of cash flow and future capital requirements. Current options under review include selling the asset, postponing construction or proceeding with the development. Through a programmatic disposition program, the Company will evaluate the sale of underperforming or fully-valued assets and reinvest proceeds into opportunities with higher risk-adjusted returns. In addition to select repositioning and development opportunities, potential capital uses include share repurchases and debt repayment. Future investment will be benchmarked against the risk-adjusted returns from share repurchases. The Company will thoroughly evaluate opportunities to increase per-share NAV through accretive repurchases when its shares trade at a meaningful discount to the underlying value of its assets. Rexford Industrial continues to target a leverage ratio of 4.0x to 4.5x on a Net Debt to EBITDA basis, which is expected to allow the Company to maintain its investment-grade rating, secure favorable borrowing terms and retain access to multiple sources of capital. Enhanced cost framework to drive significant G&A savings: Rexford Industrial is committed to operating at a G&A level that drives optimal efficiency and positions the business for long-term growth. In 2025, the Company implemented several cost-reduction initiatives. These included a reduction in force, an organizational restructuring and other cost-cutting initiatives resulting in significant G&A savings. Looking forward to 2026, the Company expects to realize an additional $20M-$25M of net G&A savings following the CEO leadership transition at the end of the Q1. FY26 G&A is projected to be in the range of $57M-$62M. These savings are expected to reduce G&A as a percentage of revenues to below the Industrial REIT peer average of 6.2%. The Company will continue to evaluate opportunities to lower costs and enhance operational efficiency, further reducing G&A as a percentage of revenues over time. Rexford Industrial also announced that it will add a new independent director to its Board of Directors by the end of 2025, following constructive engagement with Elliott Investment Management. JP Morgan and BofA Securities are serving as financial advisors to Rexford Industrial, and Sidley Austin is serving as its legal advisor. Joele Frank, Wilkinson Brimmer Katcher is serving as strategic communications advisor to the Company.