Analyst Steve Sakwa of Evercore ISI has revised his stance on Rexford Industrial (REXR, Financial), lowering it from Outperform to In Line. The new price target for the real estate investment trust is set at $38. This adjustment reflects a more cautious outlook on REXR's performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Rexford Industrial Realty Inc (REXR, Financial) is $39.60 with a high estimate of $44.00 and a low estimate of $35.00. The average target implies an upside of 11.77% from the current price of $35.43. More detailed estimate data can be found on the Rexford Industrial Realty Inc (REXR) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Rexford Industrial Realty Inc's (REXR, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Rexford Industrial Realty Inc (REXR, Financial) in one year is $62.64, suggesting a upside of 76.8% from the current price of $35.43. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Rexford Industrial Realty Inc (REXR) Summary page.
REXR Key Business Developments
Release Date: July 17, 2025
- Leases Executed: 1.7 million square feet, including lease up of four repositioning and redevelopment projects.
- Leasing Spreads: Net effective leasing spreads at 21%, cash leasing spreads at 8%.
- Embedded Rent Steps: Averaged 3.7%, up 10 basis points from last quarter.
- Same Property Occupancy: 96.1%, an increase of 40 basis points sequentially.
- Net Absorption: Positive 220,000 square feet.
- Market Rent Decline: 3.5% sequentially, 12.8% year over year.
- Repositioning and Redevelopment Lease Up: 520,000 square feet executed, total year-to-date over 900,000 square feet.
- Annualized NOI from Repositioning: Over $16 million, with a 7.4% unlevered stabilized yield.
- Dispositions: $82 million in the quarter, year-to-date $134 million at a low 4% cap rate.
- Core FFO: $0.59 per share, $0.01 increase over the prior quarter.
- Full Year 2025 Core FFO Outlook: $2.37 to $2.41 per share.
- Incremental Cash NOI Opportunity: $195 million, representing growth of 28%.
- Liquidity: Over $1.8 billion, including $560 million of cash.
- Net Debt to EBITDA: 4 times.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Rexford Industrial Realty Inc (REXR, Financial) executed 1.7 million square feet of leases, including lease-up of four repositioning and redevelopment projects.
- The company achieved a same property occupancy rate of 96.1%, an increase of 40 basis points sequentially.
- Rexford Industrial Realty Inc (REXR) reported de minimis levels of bad debt at only 6 basis points of revenue, indicating strong tenant health.
- The company has a substantial embedded growth opportunity within its portfolio, totaling $195 million of incremental cash NOI, representing growth of 28%.
- Rexford Industrial Realty Inc (REXR) has over $1.8 billion of liquidity, including $560 million of cash, and a low leverage balance sheet with net debt to EBITDA of 4 times.
Negative Points
- Market rents across Rexford's portfolio declined approximately 3.5% sequentially and 12.8% year over year.
- Macroeconomic and tariff uncertainty are impacting tenant decision-making, putting pressure on overall demand, rent levels, and lease-up time frames.
- The company has no acquisitions under contract or accepted offer currently, despite actively pursuing potential opportunities.
- Rexford Industrial Realty Inc (REXR) expects some deceleration in occupancy in the second half of the year due to planned move-outs within the same property portfolio.
- The company experienced delays in rent commencements on repositioning and redevelopment projects, impacting financial projections.
