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Rexford (REXR) Boosts Liquidity With Credit Facility Expansion

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Rexford Industrial Realty, Inc. (REXR - Free Report) recently announced about expanding its revolving credit facility and term loan repricing. As a result, the company will benefit from a higher liquidity position and lower pricing for its term loan, in turn, supporting its growth endeavors.

Particularly, the company increased the borrowing capacity of its existing unsecured revolving credit facility by $200 million from $500 million to $700 million through exercising the accordion option. The other material terms and conditions of the credit facility remain unrevised.

Moreover, with the successful repricing of its $150-million unsecured term loan facility maturing May 22, 2025, the pricing has been reduced by 60 basis points. The current pricing is LIBOR plus a spread of 95 basis points, which is subject to its credit ratings, with all other material terms and conditions unchanged.

Markedly, the industrial asset class has grabbed the limelight for showing resilience amid the pandemic with low vacancy rates, high asking rents and robust rent collections. Apart from the fast adoption of e-commerce, the logistics real estate is anticipated to benefit from the likely rise in inventory levels over the long haul. This is opening up prospects for Rexford and other industrial REITs like Duke Realty Corp. , Prologis (PLD - Free Report) and Terreno Realty Corporation (TRNO - Free Report) .

Specifically, Rexford is well poised to gain traction from robust market fundamentals, equipped with a well-capitalized balance sheet and an impressive acquisition track record. Recently, the company announced shelling $188.9 million for the acquisition of five industrial properties in prime in-fill Southern California markets.

With these buyouts, the company’s 2021 acquisition activity has, so far, reached $420 million. Moreover, there are more than $600 million of additional investments under contract or LOI. Notably, Southern California is considered the United States’ highly-valued industrial property market with supply constraints.

Shares of this currently Zacks Rank #3 (Hold) company have gained 9% over the past three months, outperforming its industry’s rally of 8.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment ResearchImage Source: Zacks Investment Research


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