Analyst John Kim of BMO Capital maintained a Hold rating on Rexford Industrial Realty, retaining the price target of $39.00.
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John Kim’s rating is based on a combination of positive and negative factors influencing Rexford Industrial Realty. On the positive side, the company reported a better-than-expected performance for the second quarter of 2025, with higher occupancy rates and maintained full-year core FFOps guidance, slightly exceeding consensus expectations. Additionally, Rexford’s leasing activity remained robust, and its balance sheet is in a solid position with a stable debt ratio.
However, there are concerns that led to the Hold rating. The company’s cash leasing spreads have decreased significantly, marking the lowest level since late 2016, and the portfolio’s mark-to-market value has also dropped. Furthermore, there has been a noticeable decline in cash same-store net operating income and a reduction in market rent estimates, particularly in the Southern California region. These factors suggest that while the company is performing well in certain areas, there are underlying challenges that could impact future growth prospects.