2024-06-17 07:00:00 ET
Summary
- Rexford Industrial is a high-quality industrial REIT with a BBB+ rating, 3.7% yield, and significant upside potential.
- Despite negative macro sentiment in California, REXR has impressive growth, low leverage, and a conservative investment thesis.
- Analysts underestimate REXR's stickiness and strength in the SoCal market, with a conservative price target of $75/share and a "BUY" recommendation.
This article was co-produced with Wolf Report
We've written about Rexford Industrial ( REXR ) a few times.
The question that best describes the company and the appeal here is:
"How high is a premium justified for a great REIT?"
This is a great REIT - it's a BBB+ rating, 3.7% yielding (wait for it), high-quality industrial player with an incredible asset base and asset portfolio that currently is in disfavor due to significantly negative macro sentiment in the Californian region (though this also seems to be turning around a bit).
We mean at this point in June 2024 to update our thesis for Rexford, an industrial REIT with what we view to be a rather significant upside if you're willing to premiumize the company a bit.
As it stands, we're willing to do that at this time.
REXR, with a market cap of over $11B, has a triple-digit total shareholder return over the past five years and a 19% annual dividend growth, making it a standout in the industrial REIT sector....
Read the full article on Seeking Alpha
For further details see:
Rexford Industrial: West Coast Remains Compelling Despite (And Because) Of The Drop