Yahoo Finance Rexford (REXR) Boosts Portfolio, '23 Investments Reach $762M
Rexford Industrial Realty, Inc. REXR recently announced that it has shelled out $357.2 million for the acquisition of three industrial properties in prime infill Southern California submarkets. With these buyouts, Rexford’s investments have reached $762 million so far in the year.
These acquisitions are a strategic fit for Rexford as Southern California is considered to be a highly valued industrial property market with high occupancy levels and supply constraints in the United States.
The properties, acquired in February and March through off-market and lightly marketed transactions, were funded using a combination of cash on hand, proceeds from forward equity settlements and the company's recent public bond offering.
Within the LA — South Bay submarket, Rexford acquired 3520 Challenger Street, Torrance, for $14.2 million. Also, in this submarket, REXR acquired 9000 Airport Boulevard, Los Angeles for $143.0 million. In the Central San Diego submarket, Rexford acquired 9223 and 9323 Balboa Avenue and 4285 Ponderosa Avenue, San Diego, CA, for $200.0 million.
Apart from the acquisitions, the company also announced the disposition of 8101-8117 Orion Avenue, Van Nuys, in the Greater San Fernando Valley submarket for $17.0 million.
With low vacancy rates, these submarkets display the solid demand for industrial real estate properties. In addition to these markets and several others, the demand for industrial real estate space has been shooting up amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies.
Apart from the fast adoption of e-commerce, the industrial real estate space is poised to gain traction over the long run from a likely rise in the inventory levels of companies as a precaution for any supply-chain disruption. This will offer opportunities to industrial landlords, including REXR, First Industrial Realty Trust, Inc. FR and Terreno Realty Corporation TRNO, to enjoy a favorable market environment.
Rexford is poised to gain traction from its robust market fundamentals, with a low-leverage balance and an impressive acquisition track record. REXR also has a near-term investment pipeline of more than $125 million of acquisitions under contract or accepted offers.
Shares of Zacks Rank #3 (Hold) Rexford have rallied 14.4% in the past six months, outperforming the industry’s increase of 6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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First Industrial Realty currently carries a Zacks Rank of 3. The Zacks Consensus Estimate for FR’s 2023 funds from operations (FFO) per share of $2.40 indicates a 5.3% year-over-year increase.
Terreno Realty carries a Zacks Rank of 2 (Buy) at present. Terreno Realty’s long-term growth rate is projected at 9.00%. The Zacks Consensus Estimate for Terreno Realty’s ongoing year’s FFO per share has been raised two cents over the past two months to $2.17.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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First Industrial Realty Trust, Inc. (FR) : Free Stock Analysis Report
Terreno Realty Corporation (TRNO) : Free Stock Analysis Report
Rexford Industrial Realty, Inc. (REXR) : Free Stock Analysis Report
