Download PDF

1. Company Snapshot

1.a. Company Description

Rexford Industrial, a real estate investment trust focused on owning and operating industrial properties throughout Southern California infill markets, owns 232 properties with approximately 27.9 million rentable square feet and manages an additional 20 properties with approximately 1.0 million rentable square feet.

Show Full description

1.b. Last Insights on REXR

Rexford Industrial Realty's recent performance was driven by strong Q2 2025 earnings, with net income attributable to common stockholders of $113.4 million, or $0.48 per diluted share, surpassing prior year quarter's $79.8 million, or $0.37 per diluted share. The company's FFO of $0.59 per share beat estimates, reflecting its financial strength. With a diversified capital structure, investment-grade credit ratings (Moody's Baa2, Fitch BBB+, S&P BBB+), and $13B in assets, Rexford Industrial Realty boasts a strong market position. Its focus on Southern California offers growth potential tied to economic cycles and onshoring trends.

1.c. Company Highlights

2. Rexford Industrial Delivers Steady Q2 Performance with Strong Leasing Activity

Rexford Industrial reported solid second-quarter results, with Core FFO of $0.59 per share, slightly above consensus estimates of $0.58. The company maintained its full-year Core FFO guidance of $2.37 to $2.41 per share, reflecting confidence in its ability to execute on its growth initiatives. Total leasing activity remained robust, with 1.7 million square feet of leases executed during the quarter, supported by net effective and cash leasing spreads of 21% and 8%, respectively. Embedded rent steps in these leases averaged 3.7%, underscoring the company's ability to drive long-term rental growth.

Publication Date: Jul -18

📋 Highlights
  • Leasing Activity:: Executed 1.7 million square feet of leases with net effective and cash leasing spreads of 21% and 8%, respectively.
  • Occupancy Growth:: Same-property occupancy increased to 96.1%, with positive net absorption of 220,000 square feet.
  • Liquidity and Leverage:: Ended the quarter with $1.8 billion of liquidity and a net debt to EBITDA ratio of 4x.
  • Core FFO Performance:: Core FFO per share increased by $0.01 to $0.59, reaffirming the full-year outlook of $2.37 to $2.41 per share.
  • Disposition Activity:: Sold 2 properties totaling $82 million, with $54 million more under contract or accepted offer.

Operational Strength and Portfolio Resilience

The company's same-property occupancy increased to 96.1%, with positive net absorption of 220,000 square feet, demonstrating strong demand for its infill Southern California industrial portfolio. Management highlighted the "irreplaceable infill Southern California portfolio," noting that supply constraints and robust demand from the nation's largest consumption market continue to support rental growth. The portfolio's average occupancy of 96.1% reflects its strategic positioning in high-demand submarkets, with guidance for the remainder of the year maintained at 95.5% to 96%. Leasing activity is currently active on 80% of vacant properties, up from 65% a year ago, signaling strong tenant interest.

Embedded Growth and Capital Recycling

Rexford Industrial's embedded growth opportunity within its portfolio totals $195 million of incremental cash NOI, representing 28% growth potential. Contractual rent steps are expected to contribute $105 million of this growth, while repositioning and redevelopment projects are projected to add another $70 million. The company sold two properties for $82 million during the quarter at a weighted average cap rate in the low 4% range, achieving an unlevered IRR of 11.9%. An additional $54 million of dispositions are under contract or accepted offer, aligning with the company's strategy to recycle capital into accretive acquisitions. Management remains disciplined in its capital allocation, prioritizing repositioning and redevelopment projects that meet stringent underwriting criteria.

Valuation and Growth Prospects

Rexford Industrial's shares trade at a P/E ratio of 26.01 and a P/B ratio of 0.93, reflecting the market's confidence in its growth trajectory. The company's strong balance sheet, with over $1.8 billion of liquidity and a net debt-to-EBITDA ratio of 4.39x, provides ample flexibility to pursue growth opportunities. Analysts estimate revenue growth of 6.1% for the next year, supported by the company's ability to capitalize on supply-demand dynamics in Southern California's industrial market. With a focused strategy on owning and enhancing high-quality, infill assets, Rexford Industrial is well-positioned to deliver sustained shareholder value.

3. NewsRoom

Card image cap

3 REITs That Big Money Might Snap Up Soon

Dec -04

Source: seekingalpha.com

Card image cap

Picking A Winner In Industrial REITs

Nov -28

Source: seekingalpha.com

Card image cap

Rexford Industrial Appoints David Stockert to Board of Directors

Nov -25

Source: prnewswire.com

Card image cap

Land & Buildings Just Ditched Rexford—Should REIT Investors Care?

Nov -24

Source: fool.com

Card image cap

The Best Dividend Stocks to Buy and Hold Forever

Nov -24

Source: fool.com

Card image cap

Rexford Industrial Highlights Strategic and Financial Priorities to Enhance Shareholder Value

Nov -18

Source: prnewswire.com

Card image cap

Rexford Industrial Implements CEO Succession Plan

Nov -18

Source: prnewswire.com

Card image cap

Rexford Industrial Realty: Checking The Credit Quality Again

Nov -15

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.81%)

6. Segments

Rental

Expected Growth: 12%

Rexford Industrial Realty's 12% rental growth is driven by increasing demand for logistics and e-commerce facilities, strategic acquisitions, and rent escalations. Additionally, the company's focus on high-growth markets, such as Southern California, and its value-add redevelopment initiatives contribute to its strong growth momentum.

Tenant Reimbursements

Expected Growth: 11%

Rexford Industrial Realty's 11% growth in Tenant Reimbursements is driven by increasing occupancy rates, rising rental income, and strategic acquisitions of high-quality industrial properties. Additionally, the company's focus on providing value-added services to tenants, such as property management and maintenance, contributes to higher reimbursement rates.

Interest Income

Expected Growth: 10%

Rexford Industrial Realty's 10% interest income growth is driven by increasing demand for industrial properties, strategic acquisitions, and rising rents. The company's focus on high-quality, infill locations and its ability to capitalize on the e-commerce boom are also contributing factors. Additionally, Rexford's strong balance sheet and access to capital enable it to pursue accretive investments, further fueling growth.

Other

Expected Growth: 9%

Rexford Industrial Realty's 9% growth is driven by increasing demand for industrial real estate, particularly in the infill and last-mile logistics markets. Strong e-commerce growth, limited supply, and rising rents in coastal markets also contribute to this growth. Additionally, Rexford's strategic acquisitions and development pipeline, as well as its focus on high-barrier-to-entry markets, support its growth momentum.

Management, Leasing and Development Services

Expected Growth: 14%

Rexford Industrial Realty's 14% growth in Management, Leasing and Development Services is driven by strategic property acquisitions, increasing demand for industrial space, and effective asset management. The company's focus on high-quality properties, strong tenant relationships, and value-add opportunities also contribute to its growth. Additionally, Rexford's development pipeline and ability to capitalize on market trends further support its expansion.

7. Detailed Products

Industrial Real Estate Properties

Rexford Industrial Realty, Inc. owns and operates a diverse portfolio of industrial properties, including warehouses, distribution centers, and manufacturing facilities.

Logistics and Distribution Services

Rexford Industrial Realty, Inc. provides logistics and distribution services to help companies manage their supply chain and transportation needs.

Industrial Property Management

Rexford Industrial Realty, Inc. offers property management services to help industrial property owners and investors maximize their returns.

Acquisition and Development Services

Rexford Industrial Realty, Inc. provides acquisition and development services to help companies and investors identify and develop industrial properties that meet their needs.

8. Rexford Industrial Realty, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Rexford Industrial Realty, Inc. operates in a niche market with limited substitutes, reducing the threat of substitutes.

Bargaining Power Of Customers

While customers have some bargaining power, Rexford Industrial Realty, Inc.'s diversified customer base and long-term leases mitigate this risk.

Bargaining Power Of Suppliers

Rexford Industrial Realty, Inc. has a diversified supplier base, reducing dependence on individual suppliers and minimizing their bargaining power.

Threat Of New Entrants

The industrial real estate market is highly competitive, and new entrants can easily enter the market, posing a significant threat to Rexford Industrial Realty, Inc.'s market share.

Intensity Of Rivalry

The industrial real estate market is highly competitive, with many established players, leading to a high intensity of rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 37.19%
Debt Cost 4.63%
Equity Weight 62.81%
Equity Cost 8.44%
WACC 7.03%
Leverage 59.22%

11. Quality Control: Rexford Industrial Realty, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
STAG Industrial

A-Score: 6.1/10

Value: 3.4

Growth: 5.4

Quality: 7.2

Yield: 7.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
LXP Industrial Trust

A-Score: 5.9/10

Value: 3.6

Growth: 2.2

Quality: 6.6

Yield: 9.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
First Industrial Realty Trust

A-Score: 5.9/10

Value: 2.5

Growth: 5.6

Quality: 8.0

Yield: 6.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Terreno Realty

A-Score: 5.8/10

Value: 2.4

Growth: 6.9

Quality: 7.4

Yield: 6.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
EastGroup Properties

A-Score: 5.8/10

Value: 2.0

Growth: 6.1

Quality: 7.1

Yield: 6.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Rexford Industrial Realty

A-Score: 5.7/10

Value: 3.0

Growth: 7.0

Quality: 6.4

Yield: 7.0

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

40.73$

Current Price

40.73$

Potential

-0.00%

Expected Cash-Flows