Assessing Rexford Industrial Realty (REXR) Valuation As Multi Year Returns Soften And Shares Trade Near Recent Levels
Why Rexford Industrial Realty Is On Investors’ Screens Today
Rexford Industrial Realty (REXR) is in focus after recent trading left the stock at a last close of $39.02, with investors weighing its current valuation, returns profile, and underlying operating metrics.
See our latest analysis for Rexford Industrial Realty.
Recent trading has been relatively soft, with a 30-day share price return of 4.20% and a year to date share price return of 0.03%. The 1-year total shareholder return of 5.99% contrasts with a 3-year total shareholder return of 22.05%, suggesting longer term momentum has faded despite modest gains over the past year.
If Rexford Industrial Realty has you reassessing real estate exposure, it may be worth broadening your watchlist to spot fast growing stocks with high insider ownership that could offer different drivers of returns.
With Rexford Industrial Realty showing weaker multi year returns, modest revenue growth of 5.02% and slightly softer net income, plus an indicated 19.06% intrinsic discount, is there value to be found here or is the market already pricing in future growth?
Most Popular Narrative: 11.9% Undervalued
With Rexford Industrial Realty last closing at $39.02 and the most followed narrative pointing to a fair value of about $44.31, the gap between price and narrative value is front and center.
Persistent land constraints and growing resistance to new industrial development in major Southern California urban centers are described as factors that drive long term scarcity value for Rexford's existing, well located properties, supporting rent growth and asset appreciation, which is expected to positively impact revenue and NAV over time. Strong tenant retention, early renewal trends, and consistently high occupancy rates (96.1% this quarter), particularly for smaller spaces where demand is reported to remain robust, are cited as highlighting continued structural demand in Rexford's submarkets, supporting stable cash flows and reducing earnings volatility.
Curious what revenue pace, margin profile, and future earnings multiple are baked into that valuation gap, and how they interact with expected share count growth and discount rate assumptions?
Result: Fair Value of $44.31 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, you also need to weigh risks such as softer market rents and the earnings impact of NOI coming offline during redevelopment before leaning too hard on that undervaluation story.
Find out about the key risks to this Rexford Industrial Realty narrative.
Build Your Own Rexford Industrial Realty Narrative
If you look at the numbers and come to a different conclusion, or just prefer building your own view from scratch, you can run through the data yourself in a few minutes and Do it your way
A great starting point for your Rexford Industrial Realty research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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