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Rexford Industrial Realty (REXR)
NYSE:REXR
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Rexford Industrial Realty
(NYSE:REXR)
76Outperform
Positive Factors
Financial Performance
The company reported Core FFO numbers of $0.62, a 6.9% increase year-over-year, which was higher than consensus estimates.
Financial Stability
Rexford has a low debt-to-total market capitalization ratio at approximately 27.5%, indicating strong financial stability.
Market Position
The company has a positive long-term outlook for the Greater LA area, which remains a strong factor for the stock.
Negative Factors
Earnings Guidance
The earnings guidance is below expectations due to lower assumed occupancy and operating income growth.
Leasing Challenges
Near-term leasing could be challenging with nearly 7 million square feet rolling and significant upcoming tenant move-outs.
Market Conditions
Industrial fundamentals continue to weaken with market rents falling -9.4% y/y, REXR's mark-to-market now 20%, and REXR's new leases spreads turned negative.
Rexford Industrial Realty (REXR) vs. S&P 500 (SPY)
Market Cap
$7.72B
Dividend Yield5.17%
Average Volume (3M)2.93M
Price to Earnings (P/E)26.6
Beta (1Y)0.96
Revenue Growth17.48%
EPS Growth7.45%
CountryUS
Employees271
SectorReal Estate
Sector Strength78
IndustryREIT - Industrial
Share Statistics
EPS (TTM)1.23
Shares Outstanding236,170,790
10 Day Avg. Volume3,736,265
30 Day Avg. Volume2,926,674
Financial Highlights & Ratios
PEG Ratio2.19
Price to Book (P/B)N/A
Price to Sales (P/S)9.50
Price to Cash Flow (P/CF)19.10
P/FCF Ratio15.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$41.00Price Target Upside25.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Rexford Industrial Realty Business Overview & Revenue Model
Company DescriptionRexford Industrial Realty, Inc. (REXR) is a real estate investment trust (REIT) focused on owning, operating, and acquiring industrial properties in Southern California. The company specializes in high-demand, supply-constrained markets, providing tailored industrial real estate solutions to a diverse range of tenants. Rexford's portfolio includes warehouses, distribution centers, and light manufacturing facilities strategically located near major transportation hubs and urban centers.
How the Company Makes MoneyRexford Industrial Realty generates revenue primarily through leasing its industrial properties to a wide array of tenants. The company's revenue model is based on collecting rental income from its leased properties, which is typically structured as long-term leases providing a consistent income stream. Additionally, Rexford enhances its revenue through strategic property acquisitions, value-add investments, and property management fees. The company also benefits from its focus on Southern California's industrial real estate market, which is characterized by limited supply and high demand, driving rental rate growth and property appreciation. Partnerships with local businesses and brokers further enable Rexford to maintain high occupancy rates and optimize its revenue potential.
Rexford Industrial Realty Financial Statement Overview
Summary
Rexford Industrial Realty showcases robust financial health with strong revenue growth and profitability metrics. The income statement reflects a significant 17.4% revenue increase with healthy profit margins. The balance sheet is solid with prudent debt management, though there's moderate liability exposure. Cash flow management indicates effective cash generation, despite potential liquidity risks.Income Statement
Rexford Industrial Realty demonstrates strong revenue growth, with a 17.4% increase from the previous year, driven by a robust real estate market. The company maintains a healthy gross profit margin of 77.6% and a net profit margin of 28.1%, indicating efficient cost management and profitability. However, there's room for improvement in EBIT margin at 39.4%, suggesting potential for enhanced operational efficiency.85
Very Positive
Balance Sheet
The balance sheet reveals a solid equity position with a debt-to-equity ratio of 0.42, reflecting prudent financial leverage. Rexford's strong ROE of 3.2% indicates effective use of equity capital. The equity ratio of 65.8% signifies a stable financial foundation, though there's moderate exposure to liabilities.78
Positive
Cash Flow
Rexford's free cash flow growth rate is negative, but the operating cash flow to net income ratio is strong at 1.8, demonstrating effective cash generation. The free cash flow to net income ratio of 0.4 suggests lower cash reserves for reinvestment, pointing to potential liquidity risks.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 936.41M | 797.83M | 631.20M | 452.24M | 330.13M | Gross Profit |
| 726.15M | 613.35M | 480.70M | 344.52M | 250.42M | EBIT |
| 368.75M | 293.81M | 218.08M | 142.96M | 98.36M | EBITDA |
| 659.77M | 538.32M | 414.88M | 327.65M | 213.62M | Net Income Common Stockholders |
| 262.87M | 238.02M | 167.58M | 89.40M | 45.55M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 55.97M | 33.44M | 36.79M | 43.99M | 176.29M | Total Assets |
| 12.65B | 10.93B | 9.26B | 6.78B | 4.95B | Total Debt |
| 3.49B | 2.23B | 1.94B | 1.40B | 1.22B | Net Debt |
| 3.44B | 2.19B | 1.90B | 1.36B | 1.04B | Total Liabilities |
| 3.92B | 2.79B | 2.34B | 1.71B | 1.42B | Stockholders Equity |
| 8.32B | 7.77B | 6.56B | 4.78B | 3.25B |
| Cash Flow | Free Cash Flow | |||
| 105.53M | 160.98M | 192.60M | 128.99M | 104.23M | Operating Cash Flow |
| 478.92M | 427.55M | 327.69M | 231.46M | 182.99M | Investing Cash Flow |
| -1.84B | -1.68B | -2.45B | -1.91B | -987.52M | Financing Cash Flow |
| 1.38B | 1.25B | 2.11B | 1.55B | 903.20M |
Rexford Industrial Realty Technical Analysis
Negative
32.57
Price Trends
38.35
Negative
38.88
Negative
42.77
Negative
Market Momentum
-1.92
Positive
33.64
Neutral
46.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REXR, the sentiment is Negative. The current price of 32.57 is below the 20-day moving average (MA) of 35.89, below the 50-day MA of 38.35, and below the 200-day MA of 42.77, indicating a bearish trend. The MACD of -1.92 indicates Positive momentum. The RSI at 33.64 is Neutral, neither overbought nor oversold. The STOCH value of 46.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REXR.
Rexford Industrial Realty Risk Analysis
Rexford Industrial Realty disclosed 59 risk factors in its most recent earnings report. Rexford Industrial Realty reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rexford Industrial Realty Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $7.72B | 26.58 | 3.35% | 5.17% | 17.48% | 7.45% | |
75 Outperform | $6.19B | 31.37 | 5.53% | 4.47% | 8.41% | -2.96% | |
72 Outperform | $2.29B | 59.34 | 2.04% | 6.83% | 5.27% | 58.15% | |
71 Outperform | $6.37B | 23.24 | 10.18% | 3.32% | 9.06% | 4.57% | |
66 Neutral | $5.94B | 30.10 | 5.59% | 3.33% | 18.24% | 6.95% | |
65 Neutral | $8.26B | 33.94 | 7.72% | 3.42% | 12.35% | 5.59% | |
60 Neutral | $3.00B | 12.40 | 0.61% | 9872.56% | 7.62% | -2.59% |
* Real Estate Sector Average
Performance Comparison
REXR
Rexford Industrial Realty
32.57
-8.77
-21.21%
EGP
Eastgroup Properties
159.90
1.66
1.05%
STAG
Stag Industrial
33.15
-0.78
-2.30%
TRNO
Terreno Realty
57.69
4.27
7.99%
FR
First Industrial Realty
47.55
3.11
7.00%
LXP
LXP Industrial Trust
7.76
-0.40
-4.90%
Rexford Industrial Realty Earnings Call Summary
Earnings Call Date: Apr 16, 2025 | % Change Since: -0.40% | Next Earnings Date: Jul 16, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced view with strong leasing performance, strategic capital allocation, and solid financials, countered by challenges from declining market rents, tariff impacts, and extended lease-up periods.Highlights
Strong Leasing Performance
Executed 2.4 million square feet of leases with net effective and cash rent spreads of 24% and 15%, respectively. Achieved 82% tenant retention, the highest level over the past year.
Accretive Capital Allocation
Completed five repositioning projects totaling 560,000 square feet at a 7.6% unlevered yield and two dispositions totaling $103 million at low 4% exit cap rates.
Solid Financial Position
Core FFO was $0.62 per share, representing 7% growth both sequentially and year over year. Maintained a low leverage balance sheet with net debt to EBITDA at 3.9 times.
High Liquidity
More than $1.6 billion of liquidity, including $608 million of cash and nearly full availability on a $1 billion unsecured line of credit.
Lowlights
Decline in Market Rents
Market rents across the portfolio declined 2.8% sequentially and 9.4% year over year, with larger spaces over 100,000 square feet experiencing excess supply.
Impact of Tariffs
Recent tariff announcements have led to some tenants deferring decision-making, decreasing leasing activity on vacant spaces from 90% to 80%.
Extended Lease-up Timing
Projected lease-up timing for repositioning and redevelopment increased to nine months due to tariff disruption.
Company Guidance
During Rexford Industrial Realty, Inc.'s first quarter 2025 earnings call, the company provided several key metrics and guidance. Rexford executed 2.4 million square feet of leases with net effective and cash rent spreads of 24% and 15%, respectively. Despite a 2.8% sequential decline and a 9.4% year-over-year drop in market rents, Rexford outperformed the overall market. The company achieved an 82% tenant retention rate, the highest in the past year, and reported positive absorption of 125,000 square feet for the quarter. Rexford's guidance anticipates a potential increase in lease-up timing due to recent tariffs, projecting a $15 million net NOI contribution from repositioning and redevelopment. The company maintains a strong liquidity position with $1.6 billion, including $608 million in cash, and expects to close the recast of its credit facility in May, positioning itself for long-term value creation despite current economic uncertainties.Rexford Industrial Realty Corporate Events
Executive/Board ChangesShareholder Meetings
Rexford Industrial Realty Chairman Announces Retirement
Neutral
Apr 14, 2025
On April 9, 2025, Rexford Industrial Realty announced that Richard Ziman, the Chairman of the Board, will retire and not seek reelection at the 2025 annual meeting of stockholders. Following his retirement, the board will reduce its size to seven directors, with Ziman’s departure not stemming from any disagreements with the company’s operations or policies.
Spark’s Take on REXR Stock
According to Spark, TipRanks’ AI Analyst, REXR is a Outperform.
Rexford Industrial Realty receives a strong overall score due to its solid financial performance and strategic positioning. The company’s robust revenue growth and profitability, combined with disciplined financial management, are key strengths. However, concerns about valuation and market conditions, such as declining market rents and occupancy challenges, warrant cautious optimism. Recent corporate achievements further affirm its resilience and potential for sustainable growth.
To see Spark’s full report on REXR stock, click here.
Business Operations and StrategyFinancial Disclosures
Rexford Industrial Realty Reports Strong 2024 Financial Results
Positive
Feb 5, 2025
Rexford Industrial Realty announced solid financial and operating results for the fourth quarter and full year of 2024, demonstrating the strength of its business model. The company reported a net income attributable to common stockholders of $262.9 million for 2024, marking a significant increase from the previous year. Core FFO also rose by 15%, with rental rates showing significant growth across new and renewal leases. The company completed acquisitions worth $1.5 billion and maintained a low-leverage balance sheet, indicating strong financial health and strategic positioning in the market.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.