Mizuho Securities analyst Vikram Malhotra has maintained their neutral stance on REXR stock, giving a Hold rating today.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Vikram Malhotra’s rating is based on several factors impacting Rexford Industrial Realty’s performance. The company reported an in-line FFO for the fourth quarter; however, challenges emerged due to lighter-than-expected leasing activities and a disappointing financial guidance for the future. The projected FFO guidance is approximately 4% below market expectations, influenced by lower anticipated occupancy rates and operating income growth, alongside the impact of capital raising activities.
Another significant factor influencing the Hold rating is the company’s conservative earnings guide, which reflects potential occupancy drops and moderate growth in same-store net operating income. Market conditions, such as declining rent growth and competitive pricing strategies by peers, also pose challenges. Despite these issues, the company shows potential for future cash flow growth contingent on disciplined capital allocation and successful lease-up of redevelopments. However, the lack of current acquisitions under contract and reliance on dispositions highlight uncertainty in achieving these growth targets.
In another report released today, BMO Capital also maintained a Hold rating on the stock with a $41.00 price target.
REXR’s price has also changed moderately for the past six months – from $47.440 to $40.770, which is a -14.06% drop .