Rexford Industrial Realty, Inc. (NYSE: REXR) shares plunged 5.81% on Wednesday following the release of the company's fourth quarter 2024 earnings results and full-year 2025 guidance. The industrial real estate investment trust also announced a new $300 million share repurchase program.
For the fourth quarter, Rexford Industrial reported core funds from operations (FFO) of $0.58 per share, meeting Wall Street's expectations. Revenue for the quarter came in at $242.9 million, narrowly missing analysts' consensus estimate of $243.7 million.
The company's 2025 guidance, however, fell short of analysts' expectations. Rexford Industrial projected full-year core FFO of $2.37 to $2.41 per share, compared to the consensus estimate of $2.47. The company also guided for same-property net operating income (NOI) growth of 0.75% to 1.25% on a net effective basis, reflecting a slowdown in growth compared to 2024.
Commenting on the results, Rexford Industrial's Co-Chief Executive Officers, Michael Frankel and Howard Schwimmer, stated, "Rexford Industrial delivered solid fourth quarter and full year operating results, underscoring the strength and resilience of our differentiated business model." They added, "Looking ahead, we remain focused on unlocking our substantial embedded NOI growth opportunities to support sustainable earnings growth over the near and long term."
In addition to the earnings report, Rexford Industrial announced that its Board of Directors authorized a $300 million share repurchase program over the next 24 months. The company stated that the timing and amount of share repurchases will depend on various factors, including the stock price, trading volume, and general market conditions.
Analysts suggest that the combination of lower-than-expected 2025 guidance and the new share repurchase program may have contributed to the stock's decline on Wednesday. While share buybacks can be viewed positively as a means of returning capital to shareholders, they can also signal concerns about future growth prospects or a lack of attractive investment opportunities.
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