California-based Rexford Industrial Realty, Inc. (REXR) has acquired eight industrial properties for a total of $270 million. The company used cash in hand and proceeds from forward equity settlements to make these purchases.
The Co-CEOs of Rexford, Howard Schwimmer and Michael Frankel, said, “These eight investments, acquired through off-market and lightly marketed transactions, deliver substantial value creation and result from Rexford’s deep, local sharp-shooter market knowledge and relationships, our value-add expertise and proprietary access to the infill Southern California market.”
Last year, the real estate investment trust company acquired industrial properties worth $1.9 billion, taking its portfolio to 296 properties spanning nearly 37.1 million square feet.
“With over $400 million of additional investments under contract or accepted offer, plus a broad range of internal growth initiatives under-way, our low-leverage, fortress-like balance sheet supports the expansion of our best-in-class portfolio and our ability to generate above-market cash flow growth and long-term value creation for our stakeholders,” the Co-CEOs said.
Rexford acquires, owns and operates industrial properties across Southern California infill markets. Apart from the 296 properties that it owns, the company manages another 20 properties with around one million square feet of rentable space.
Wall Street’s Take
Last month, J.P. Morgan (JPM) analyst Michael Mueller upgraded the rating on the stock to Buy from Hold with a price target of $84 (3.6% upside potential).
Additionally, Blaine Heck, an analyst with Wells Fargo (WFC), upgraded Rexford from Hold to Buy and increased the price target from $65 to $83 (2.3% upside potential).
Overall, the stock has a Strong Buy consensus rating based on 3 Buys. The average Rexford Industrial Realty stock prediction of $83 implies 2.3% upside potential. Shares have gained 74% over the past year.
Hedge Fund Confidence
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Rexford is currently Very Positive, as the cumulative change in holdings across all seven hedge funds that were active in the last quarter was an increase of 535,700 shares.