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Rexford Industrial Realty (REXR)
NYSE:REXR
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Rexford Industrial Realty
(NYSE:REXR)
76Outperform
Positive Factors
Cash Flow
The company's revised materials suggest a potential 40% cash flow growth, highlighting disciplined capital allocation.
Financial Health
Rexford has a low debt-to-total market capitalization ratio at approximately 27.5%, indicating strong financial stability.
Growth Opportunities
Rexford Industrial Realty, Inc. has a healthy acquisition pipeline, including recent significant acquisitions from Blackstone, which supports a positive outlook for the company's growth.
Negative Factors
Earnings Guidance
The earnings guidance is below expectations due to lower assumed occupancy and operating income growth.
Leasing Activity
Leasing activity, particularly for new leases, was light, with no repositioning and redevelopment leasing completed.
Occupancy Challenges
Short-term occupancy challenges exist for the company, with expected declines due to tenant move-outs.
Rexford Industrial Realty (REXR) vs. S&P 500 (SPY)
Market Cap
$7.91B
Dividend Yield5.03%
Average Volume (3M)2.44M
Price to Earnings (P/E)28.8
Beta (1Y)1.10
Revenue Growth17.48%
EPS Growth7.45%
CountryUS
Employees271
SectorReal Estate
Sector Strength68
IndustryREIT - Industrial
Share Statistics
EPS (TTM)1.20
Shares Outstanding227,964,280
10 Day Avg. Volume2,422,022
30 Day Avg. Volume2,437,791
Financial Highlights & Ratios
PEG Ratio3.87
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
$43.00Price Target Upside36.21% Upside
Rating ConsensusHold
Number of Analyst Covering13
Rexford Industrial Realty Business Overview & Revenue Model
Company DescriptionRexford 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.
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
31.57
Price Trends
39.40
Negative
39.48
Negative
43.12
Negative
Market Momentum
-0.19
Positive
46.35
Neutral
14.65
Positive
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 31.57 is below the 20-day moving average (MA) of 38.30, below the 50-day MA of 39.40, and below the 200-day MA of 43.12, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 46.35 is Neutral, neither overbought nor oversold. The STOCH value of 14.65 is Positive, 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $6.49B | 21.97 | 10.99% | 3.43% | 9.06% | 4.57% | |
76 Outperform | $7.91B | 28.82 | 3.38% | 5.03% | 17.48% | 7.45% | |
75 Outperform | $6.26B | 31.73 | 5.53% | 4.67% | 8.41% | -2.96% | |
72 Outperform | $2.35B | 61.03 | 2.04% | 6.68% | 5.27% | 58.15% | |
71 Outperform | $5.75B | 29.14 | 5.59% | 3.44% | 18.24% | 6.95% | |
68 Neutral | $7.93B | 32.75 | 7.72% | 3.59% | 12.35% | 5.59% | |
61 Neutral | $4.26B | 15.61 | -3.60% | 11.29% | 6.17% | -21.11% |
* Real Estate Sector Average
Performance Comparison
REXR
Rexford Industrial Realty
31.57
-15.89
-33.48%
EGP
Eastgroup Properties
145.28
-27.24
-15.79%
STAG
Stag Industrial
30.08
-6.71
-18.24%
TRNO
Terreno Realty
51.18
-12.26
-19.33%
FR
First Industrial Realty
43.07
-8.62
-16.68%
LXP
LXP Industrial Trust
7.22
-1.56
-17.77%
Rexford Industrial Realty Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -21.70% | Next Earnings Date: Apr 16, 2025
Earnings Call Sentiment Neutral
The earnings call highlights Rexford Industrial's strong leasing performance and successful repositioning projects, demonstrating resilience in challenging market conditions. However, there are concerns about declining market rents, occupancy challenges, and longer projected downtimes which could impact future growth. The company maintains a strong financial position and is focused on maximizing returns through disciplined capital allocation.Highlights
Strong Leasing Performance
Executed 1 million square feet of leasing at net effective leasing spreads of 55% and cash leasing spreads of 41%. Annual embedded rent steps averaged 3.9%.
Successful Repositioning Projects
Stabilized 10 repositioning and redevelopment projects across 825,000 square feet with an aggregate 7.5% unlevered stabilized yield on total investment.
Significant Acquisitions and Builds
Completed $1.5 billion of acquisitions projected to generate a 5.6% unlevered stabilized yield. Built 5 properties for $44 million, generating a 12.8% unlevered IRR.
Cost Control and Efficiency
No increase in year-over-year projected G&A despite growing consolidated NOI by 17% in 2024.
Solid Financial Position
Maintained a low leverage profile with net debt-to-EBITDA at 4.6x and liquidity totaling $1.4 billion.
Lowlights
Market Rent Decline
Observed a decline in taking rents for quality products comparable to the Rexford portfolio of 1.5% sequentially and 8% year-over-year.
Occupancy Challenges
Same-property average occupancies declined by 120 basis points sequentially, with a projected 100 basis points decline in average occupancy for 2025.
Longer Projected Downtime
Projected downtime increased to 6.5 months compared to 5 months in 2024, impacting occupancy levels.
No Acquisitions Under Contract
Currently, there are no acquisitions under contract or accepted offer.
Company Guidance
In the Rexford Industrial Fourth Quarter 2024 Earnings Conference Call, the company provided several key metrics and guidance for 2025. They reported a same-property average occupancy decline of 120 basis points sequentially and executed 1 million square feet of leasing with net effective leasing spreads of 55% and cash leasing spreads of 41%. For the full year, they achieved a 7.5% unlevered stabilized yield on 825,000 square feet of repositioning and redevelopment projects. In terms of acquisitions, Rexford completed $1.5 billion worth with a projected 5.6% unlevered stabilized yield. For 2025, they anticipate a same-property net effective NOI growth of 1%, with a core FFO guidance range of $2.37 to $2.41 per share and are taking steps to maintain a low leverage profile, with a net debt-to-EBITDA ratio at 4.6x as of the quarter end. Their capital allocation strategy includes $275 million for repositioning and redevelopment, with no new acquisitions currently under contract, but $105 million of dispositions are pending. They also have a $300 million share repurchase program authorized.Rexford Industrial Realty Corporate Events
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.