Rexford Industrial Realty Inc (REXR, Financial), a prominent player in the REIT industry, has demonstrated a remarkable stock performance in recent months. With a current market capitalization of $11.22 billion and a stock price of $51.5, Rexford has seen a significant uptick. Over the past week alone, the stock has gained 9.10%, and over the last three months, it has surged by 22.03%. This impressive growth trajectory is further underscored by its GF Value of $66.89, suggesting that the stock is modestly undervalued compared to its past GF Value of $71.75, which indicated a possible value trap.
Overview of Rexford Industrial Realty Inc
Rexford Industrial Realty Inc specializes in the acquisition, ownership, and operation of industrial properties in Southern California's infill markets. The company's strategic focus on leasing facilities in areas with limited developable land has positioned it as a key player in the Los Angeles and San Diego markets. Rexford's portfolio primarily consists of light manufacturing and distribution warehouse buildings, catering to a diverse range of tenants from the wholesale, retail, light manufacturing, industrial equipment, and food and beverage sectors.
Assessing Profitability
Rexford's financial health is robust, as indicated by its Profitability Rank of 8/10. The company boasts an Operating Margin of 37.35%, which is superior to 33.38% of 695 companies in the same sector. Additionally, its Return on Equity (ROE) and Return on Assets (ROA) stand at 3.17% and 2.20% respectively, both metrics outperforming a significant portion of their peers. The Return on Invested Capital (ROIC) is also noteworthy at 2.89%, reflecting efficient capital management. Remarkably, Rexford has maintained profitability for the past 10 years, a feat achieved by less than 0.12% of companies in its industry.
Growth Metrics
The company's Growth Rank stands at a perfect 10/10. Rexford has shown consistent growth in revenue per share over the past three and five years, with rates of 13.00% and 11.30% respectively, outperforming a majority of its competitors. Future estimates are even more promising, with a projected total revenue growth rate of 17.03% over the next three to five years. Earnings per share (EPS) growth has also been strong, with a three-year growth rate of 34.60% and a five-year rate of 32.60%. The estimated future EPS growth rate is 19.55%, indicating potential for continued upward momentum.
Significant Shareholders
Notable investors in Rexford include T Rowe Price Equity Income Fund (Trades, Portfolio), holding 1,985,000 shares, and Ron Baron (Trades, Portfolio) with 1,587,446 shares. Baillie Gifford (Trades, Portfolio) also holds a significant stake with 597,055 shares. These investments reflect confidence from major market players in Rexford's business model and future prospects.
Competitive Landscape
Rexford operates in a competitive sector with key players like CubeSmart (CUBE, Financial) with a market cap of $10.98 billion, EastGroup Properties Inc (EGP, Financial) valued at $9.03 billion, and Americold Realty Trust Inc (COLD, Financial) at $8.07 billion. Despite the stiff competition, Rexford's strategic market positioning and consistent financial performance set it apart as a leader in the Southern California industrial real estate market.
Conclusion
Rexford Industrial Realty's recent stock performance is a testament to its solid profitability metrics, strategic growth initiatives, and strong competitive positioning within the REIT industry. With its stock currently seen as modestly undervalued, Rexford presents a compelling case for investors looking for growth and stability in the real estate sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
