REXFORD INDUSTRIAL REALTY: A PREMIUM STOCK IN A SUPPLY-CONSTRAINED MARKET

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Rexford Industrial Realty($NYSE:REXR), Inc is a leading industrial real estate investment trust in the United States. The company owns a portfolio of properties in the infill region of Southern California, where average rents are significantly higher than the national average. Rexford Industrial Realty has produced market-leading returns over the past several years, with total shareholder returns of 145% since 2017 and a three-year compound annual growth rate of 34% and 20% in consolidated net operating income and funds from operations, respectively. The company is also leading the peer set over the past one year, with a return of about 2.5%. Despite strong underlying fundamentals, shares are currently trading at the lower end of their 52-week range. While the current pricing multiple of 32x forward FFO is a premium relative to peers, it is justified, given the dynamics in Rexford Industrial Realty’s primary operating location.

Share Price

Rexford Industrial Realty is a real estate investment trust that focuses on the ownership and operation of industrial properties in Southern California. The company’s stock opened at $63.0 on Wednesday and closed at $62.2. The company’s properties are located in key markets and submarkets that have limited supply and strong demand fundamentals. Rexford Industrial Realty’s portfolio is well-positioned to benefit from the continued growth of e-commerce and the resulting increase in demand for industrial space.

VI Analysis

Based on the company’s fundamentals, Rexford Industrial Realty appears to have strong long-term potential. The company’s asset base, dividend history, and growth track record are all positive indicators of its future prospects. However, the company’s profitability is only average, which may limit its ability to generate significant returns in the future. Rexford Industrial is classified as a “cow”, a type of company that has a track record of paying out consistent and sustainable dividends. Dividend-paying companies are generally considered to be less risky, as they pursue growth at a sustainable rate. Rexford Industrial has a high health score of 10/10, indicating that it is in good financial shape and capable of sustaining future operations in times of crisis.

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Summary

Rexford Industrial Realty is a top pick for investors seeking to capitalize on the strong demand for industrial real estate. The company’s portfolio of well-located properties in key markets across the U.S. is poised to benefit from the ongoing e-commerce boom and the resulting need for more warehouses and distribution centers. Rexford also has a proven track record of creating value through active management and strategic acquisitions. Given the limited supply of industrial properties relative to demand, Rexford is well positioned to continue delivering strong performance for shareholders.