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Rexford Industrial Realty (REXR)
NYSE:REXR
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Rexford Industrial Realty
(NYSE:REXR)
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Rating:74Outperform
Price Target:
$45.00
â–²(12.36% Upside)
The score is driven primarily by strong financial performance (growth, margins, and cash flow strength with moderate leverage) and a constructive earnings update with raised guidance and strong leasing/occupancy. The rating is held back by mixed technical momentum (negative MACD and below key moving averages) and a relatively high P/E, partially offset by the solid dividend yield.
Positive Factors
Robust revenue growth and margins
Sustained double‑digit revenue growth combined with high gross and net margins supports durable cash generation and internal funding capacity. Strong profitability underpins dividend coverage, reinvestment for redevelopment, and resilience through economic cycles over the next 2–6 months.
High occupancy and record leasing
Market‑leading leasing velocity and sub‑97% occupancy in core Southern California infill markets indicate structural demand and tight supply. High occupancy reduces downtime and vacancy risk, supporting steady rental cash flows and stronger re‑let economics over multiple quarters.
Strong liquidity and cash conversion
Ample liquidity and high cash conversion provide strategic flexibility to fund redevelopment, cover temporary NOI gaps, and pursue accretive capital allocation (repurchases/dispositions) without stressing the balance sheet across the medium term.
Negative Factors
Near‑term NOI offline from redevelopments
Planned redevelopment activity will temporarily remove material NOI from income statements, pressuring FFO and distributable cash until projects stabilize. This structural timing mismatch requires using liquidity or diverting capital, affecting returns into 2026.
Lower‑than‑expected stabilized yields
Compression of stabilized yields versus underwriting reduces expected returns on redeployments and development, making future capital recycling and acquisition activity less accretive and constraining long‑term FFO growth unless rents or cap rates adjust favorably.
Limited acquisition activity; reliance on dispositions
Dependence on selling assets to fund buybacks and redeployments signals constrained acquisition opportunities or pricing mismatch. Over the medium term, this limits external portfolio growth and could force suboptimal capital deployment if attractive buying opportunities remain scarce.
Rexford Industrial Realty (REXR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.49B
Dividend Yield4.3%
Average Volume (3M)2.09M
Price to Earnings (P/E)28.7
Beta (1Y)0.74
Revenue Growth10.27%
EPS Growth15.25%
CountryUS
Employees271
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)0.37
Shares Outstanding232,810,410
10 Day Avg. Volume2,104,309
30 Day Avg. Volume2,094,610
Financial Highlights & Ratios
PEG Ratio4.31
Price to Book (P/B)1.01
Price to Sales (P/S)9.01
P/FCF Ratio79.97
Enterprise Value/Market Cap1.39
Enterprise Value/Revenue13.26
Enterprise Value/Gross Profit17.11
Enterprise Value/Ebitda19.27
Forecast
1Y Price Target
$44.00Price Target Upside9.86% Upside
Rating ConsensusHold
Number of Analyst Covering14
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 variety of tenants, including logistics and e-commerce companies. The company benefits from long-term leases that provide stable and recurring rental income. Key revenue streams include base rent from tenants, reimbursements for property operating expenses, and income from property management services. Additionally, Rexford engages in property development and redevelopment, allowing it to enhance its portfolio and create value through increased rental rates and property appreciation. The company's focus on high-demand industrial markets and its strategic acquisitions contribute to its earnings, as does its established reputation and relationships with tenants in the logistics sector.
Rexford Industrial Realty Earnings Call Summary
Earnings Call Date:Oct 15, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 04, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational quarter driven by record leasing, strong occupancy gains, accretive capital recycling and modest upward guidance adjustments, supported by solid liquidity and disciplined capital allocation. However, meaningful near-term headwinds remain: sequential rent declines and cash mark-to-market pressure, some stabilized yields below underwriting expectations, projected temporary NOI offline for redevelopment projects, and macro/tariff uncertainty. Overall, the operational momentum (leasing, occupancy, FFO guidance, buybacks and balance sheet strength) outweighs the near-term re-leasing and yield challenges.Q3-2025 Updates
Positive Updates
Record Leasing and Net Absorption
Executed 3.3 million square feet of leasing in Q3 (the highest leasing quarter in company history), nearly double the prior quarter, and delivered positive net absorption of 1.9 million sq ft in Rexford's portfolio versus 400k sq ft in the overall infill SoCal market (Rexford outperformance ~380 bps).
Strong Occupancy Gains
Same-property ending occupancy rose to 96.8%, up 60 basis points sequentially; total portfolio occupancy (including repositioning/redevelopment) increased ~260 basis points quarter-over-quarter.
Healthy Leasing Spreads and Low Bad Debt
Leasing spreads for comparable leases were 26% net effective and 10% on a cash basis. Bad debt levels are below historical averages at ~30 basis points of revenue year-to-date, with negligible bad debt recorded in the most recent quarters.
FFO and Guidance Up
Third-quarter Core FFO was $0.60 per share, up $0.01 sequentially. Company raised full-year 2025 Core FFO per share midpoint to $2.40 (up $0.01) and increased same-property cash NOI midpoint to 4%, up 150 basis points from last quarter.
Accretive Capital Recycling and Share Repurchases
Sold 3 properties for $54 million in the quarter (YTD dispositions $188 million at a weighted avg exit cap rate of 4.2%), executed $150 million of share repurchases funded by disposition proceeds, and received Board authorization for a new $500 million repurchase program. Company reported capturing a ~200 bps spread between weighted average exit cap rate and implied FFO yield on repurchases.
Repositioning/Redevelopment Progress
Executed 845k sq ft of repositioning/redevelopment leases in the quarter; YTD lease-up of reposition/redev is 1.5 million sq ft representing ~$27 million of annualized incremental NOI. Projected reposition/redev annualized NOI is ~$65 million, with ~$41 million tied to projects stabilized or in lease-up and ~$24 million under construction.
Strong Liquidity and Balance Sheet Position
Maintained liquidity of $1.6 billion at quarter end and reported a net debt to EBITDA of 4.1x, reflecting a low-levered, flexible balance sheet.
Operating Discipline and Cost Management
Company emphasized operating leverage initiatives and cost controls: reported ~17% NOI growth year-over-year with 0% G&A growth for the year-to-date and ongoing efforts to drive operating margin and efficiency.
Negative Updates
Sequential Rent Declines and Mark-to-Market Pressure
Rexford's portfolio experienced a sequential rent decline of ~1% vs. a 2% decline in the overall infill market. Company reported a cash mark-to-market of negative 1% (net effective mark-to-market ~10%), and management flagged potential pressure on re-leasing spreads into 2026–2027.
Lower-Than-Expected Stabilized Yields
Seven properties stabilized in the quarter at an average yield of 4.4%, which management acknowledged as below prior expectations; YTD stabilization average was 5.8% across 14 properties. Some yields are not meeting underwriting assumptions given recent rent declines.
Near-Term NOI Offline from Construction Starts
Approximately $25 million of projected annualized NOI is expected to go offline as projects commence construction in late 2025 and throughout 2026, creating near-term cash flow pressure until those projects stabilize.
Macroeconomic and Tariff Uncertainty
Management highlighted ongoing macroeconomic uncertainty and tariff policy volatility that could unpredictably impact tenant demand despite improving tenant sentiment this quarter.
No Acquisitions Year-to-Date
The company reported zero closed acquisitions YTD and none under contract or accepted offer, indicating limited acquisition activity during the period and reliance on optimization of existing portfolio and recycling capital.
Reserve for Potential Bad Debt and Watchlist
Management has set a precautionary reserve of ~70 basis points (~$1.7 million of NOI) for Q4 and maintains ~20 tenants on a watch/pre-watch list, indicating possible credit risk exposure that could affect future quarters.
Stabilized Yields vs. Capital Allocation Tradeoffs
While dispositions enabled accretive share repurchases, some dispositions and implied exit cap rates (e.g., 3.7% in one example) reflect a market with low cap rates that may compress yields on redeployments and influence future return thresholds.
Company Guidance
Rexford raised full‑year 2025 Core FFO per share midpoint to $2.40 (up $0.01) and increased its same‑property cash NOI midpoint to 4% (up 150 bps); Q3 Core FFO was $0.60 (up $0.01 QoQ). The company highlighted $1.6 billion of liquidity, a net debt/EBITDA of 4.1x, $150 million of Q3 share repurchases and a new $500 million repurchase authorization, funded in part by dispositions (Q3 sales $54 million; YTD dispositions $188 million at a 4.2% weighted‑average exit cap rate; ~$160 million under contract) and no acquisitions under contract. Operationally, Q3 leasing totaled 3.3 million sq ft with portfolio net absorption of +1.9 million sq ft (vs. market +400k), same‑property ending occupancy of 96.8% (+60 bps QoQ) and total portfolio occupancy +260 bps QoQ; repositioning/redevelopment lease‑ups were 845k sq ft in Q3 and 1.5M sq ft YTD (representing $27 million of annualized incremental NOI) with $65 million of projected annualized NOI tied to redevs ($41M stabilized/in lease‑up, $24M under construction) partially offset by ~ $25M of NOI expected offline as projects commence construction. Additional financial and portfolio metrics cited: net effective mark‑to‑market +10% (cash -1%), bad debt ~30 bps YTD, and a Q4 reserve of ~70 bps (~$1.7 million).Rexford Industrial Realty Financial Statement Overview
Summary
Rexford Industrial Realty demonstrates strong financial performance with robust revenue growth, solid profitability, and effective cash flow management. The company maintains a moderate leverage and a strong equity base, providing financial stability and supporting continued expansion.Income Statement
Rexford Industrial Realty demonstrates strong revenue growth with a TTM revenue growth rate of 15.5%, indicating robust expansion. The company maintains healthy profitability metrics, with a gross profit margin of 77.5% and a net profit margin of 33.4% in the TTM period. EBIT and EBITDA margins are also solid at 37.9% and 66.9%, respectively. These metrics reflect effective cost management and operational efficiency, contributing to the company's strong financial performance.Balance Sheet
The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.39, indicating moderate leverage. The return on equity (ROE) is 3.85%, which, while modest, reflects consistent profitability. The equity ratio stands at 67.5%, demonstrating a strong equity base relative to total assets, which enhances financial stability and reduces risk.Cash Flow
Rexford Industrial Realty exhibits strong cash flow management, with a significant free cash flow growth rate of 34.7% in the TTM period. The operating cash flow to net income ratio is 2.79, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio of 0.38 suggests effective reinvestment and dividend potential, supporting long-term growth.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 997.93M | 936.41M | 797.83M | 631.20M | 452.24M | 330.13M |
| Gross Profit | 773.49M | 726.15M | 613.35M | 480.70M | 344.52M | 250.42M |
| EBITDA | 686.83M | 614.10M | 506.81M | 383.67M | 279.78M | 202.97M |
| Net Income | 333.67M | 273.80M | 238.02M | 167.58M | 128.24M | 76.40M |
Balance Sheet | ||||||
| Total Assets | 12.85B | 12.65B | 10.93B | 9.26B | 6.78B | 4.95B |
| Cash, Cash Equivalents and Short-Term Investments | 314.42M | 55.97M | 33.44M | 36.79M | 43.99M | 176.29M |
| Total Debt | 3.37B | 3.35B | 2.23B | 1.94B | 1.40B | 1.28B |
| Total Liabilities | 3.81B | 3.92B | 2.79B | 2.34B | 1.71B | 1.42B |
| Stockholders Equity | 8.68B | 8.32B | 7.77B | 6.56B | 4.78B | 3.25B |
Cash Flow | ||||||
| Free Cash Flow | 206.72M | 105.53M | 160.98M | 192.60M | 128.99M | 104.23M |
| Operating Cash Flow | 546.60M | 478.92M | 427.55M | 327.69M | 231.46M | 182.99M |
| Investing Cash Flow | -368.21M | -1.84B | -1.68B | -2.45B | -1.91B | -987.52M |
| Financing Cash Flow | 74.20M | 1.38B | 1.25B | 2.11B | 1.55B | 903.20M |
Rexford Industrial Realty Technical Analysis
Positive
40.05
Price Trends
40.68
Negative
41.14
Negative
38.14
Positive
Market Momentum
-0.28
Negative
49.27
Neutral
88.91
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REXR, the sentiment is Positive. The current price of 40.05 is above the 20-day moving average (MA) of 40.03, below the 50-day MA of 40.68, and above the 200-day MA of 38.14, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 49.27 is Neutral, neither overbought nor oversold. The STOCH value of 88.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $9.82B | 38.61 | 7.83% | 3.15% | 11.10% | -1.65% | |
75 Outperform | $7.08B | 29.27 | 7.17% | 4.02% | 9.62% | 31.08% | |
74 Outperform | $9.49B | 28.73 | 4.03% | 4.30% | 10.27% | 15.25% | |
74 Outperform | $6.15B | 18.96 | 8.38% | 3.38% | 21.13% | 74.37% | |
74 Outperform | $8.08B | 33.12 | 8.97% | 2.98% | 9.66% | -23.17% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
54 Neutral | $8.33B | -47.39 | -2.06% | 6.18% | 0.44% | 75.40% |
* Real Estate Sector Average
REXR
Rexford Industrial Realty
40.05
2.56
6.83%
EGP
Eastgroup Properties
183.19
25.07
15.86%
STAG
Stag Industrial
38.02
5.72
17.71%
TRNO
Terreno Realty
59.41
1.72
2.98%
FR
First Industrial Realty
58.87
10.21
20.98%
LINE
Lineage, Inc.
37.19
-16.32
-30.50%
Rexford Industrial Realty Corporate Events
Business Operations and StrategyExecutive/Board Changes
Rexford Industrial Sets 2026 Pay Plan Amid CEO Transition
Neutral
Dec 22, 2025
On December 19, 2025, Rexford Industrial Realty’s compensation committee approved the 2026 executive compensation program and granted 2025 year-end equity awards, aligning pay structures with the previously announced leadership transition in which current COO Laura Clark will become CEO on April 1, 2026, and co-CEOs Michael S. Frankel and Howard Schwimmer will depart effective March 31, 2026. The package sets 2026 base salaries for Clark and other key executives, establishes a cash incentive plan for Clark, CFO Michael Fitzmaurice and General Counsel David Lanzer based 70% on Core FFO per diluted share and Same Property Portfolio NOI and 30% on qualitative strategic objectives, and provides Frankel and Schwimmer with pro rata 2026 bonuses through their separation date under existing transition agreements. The committee also approved 2025 equity incentives consisting of time-vesting LTIP units and performance-vesting LTIP units for Clark, Fitzmaurice and Lanzer, shifting the mix toward 60% performance-based awards and tying long-term incentives entirely to relative total shareholder return versus the Nareit Industrial REIT Index and the Dow Jones U.S. Equity REIT index, with an additional absolute TSR modifier and more restrictive change-in-control vesting terms for Fitzmaurice, underscoring a stronger link between executive pay, shareholder returns and the company’s long-term performance metrics.
The most recent analyst rating on (REXR) stock is a Hold with a $44.00 price target. To see the full list of analyst forecasts on Rexford Industrial Realty stock, see the REXR Stock Forecast page.
Business Operations and StrategyExecutive/Board Changes
Rexford Industrial Realty Expands Board with New Appointment
Positive
Nov 25, 2025
On November 24, 2025, Rexford Industrial Realty announced the expansion of its Board of Directors from eight to nine members, appointing David Stockert as an independent director effective January 1, 2026. Stockert, with extensive experience in industrial real estate and leadership roles, is expected to enhance the company’s governance and strategic direction. The board will reduce to seven directors after the next annual meeting, following the completion of service by two current directors. Stockert’s appointment is seen as a strategic move to bolster Rexford’s focus on value creation and capital allocation, aligning with its long-term growth strategy in the competitive Southern California industrial market.
The most recent analyst rating on (REXR) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Rexford Industrial Realty stock, see the REXR Stock Forecast page.
Business Operations and StrategyExecutive/Board Changes
Rexford Industrial Realty Appoints New CEO Laura Clark
Positive
Nov 18, 2025
On November 17, 2025, Rexford Industrial Realty announced the appointment of Laura Clark as the new Chief Executive Officer, effective April 1, 2026, succeeding Michael Frankel and Howard Schwimmer. This leadership transition is part of a multi-year succession plan, with Clark bringing extensive experience from her roles at Rexford and Regency Centers. The transition aims to ensure a seamless handover of leadership responsibilities, with the outgoing Co-CEOs having significantly grown the company’s portfolio and market capitalization since its IPO. The Board expressed confidence in Clark’s ability to lead the company forward, focusing on strategic vision and operational excellence.
The most recent analyst rating on (REXR) stock is a Hold with a $44.00 price target. To see the full list of analyst forecasts on Rexford Industrial Realty stock, see the REXR Stock Forecast page.
Business Operations and StrategyStock BuybackFinancial Disclosures
Rexford Industrial Realty Reports Strong Q3 2025 Results
Positive
Oct 15, 2025
Rexford Industrial Realty reported strong financial results for the third quarter of 2025, with net income attributable to common stockholders of $87.1 million, up from $65.1 million in the prior year quarter. The company executed 3.3 million square feet of new and renewal leases, with rental rates increasing significantly. Rexford also sold three properties for $53.6 million and repurchased $150 million worth of shares, reflecting a strategic approach to capital allocation. The company’s operational success and strategic initiatives underscore its commitment to delivering growth and value to shareholders.
The most recent analyst rating on (REXR) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on Rexford Industrial Realty stock, see the REXR Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.