Back to top

Image: Bigstock

Rexford (REXR) Boosts Portfolio, '22 Investments Reach $2B

Read MoreHide Full Article

Rexford Industrial Realty, Inc. (REXR - Free Report) recently announced that it has shelled out $338.9 million for the acquisition of seven industrial properties in prime infill Southern California submarkets. With these buyouts, Rexford’s investments have reached $2.0 billion so far in the year. Also, more than $200 million in additional investments is under contract or accepted offer.

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 abovementioned properties, acquired in July, August and September through off-market transactions, were funded using a combination of cash on hand and the company's line of credit.

Within the LA — South Bay submarket, Rexford acquired 2880 E. Ana Street and 17909 and 17929 S. Susana Road, Rancho Dominguez for $34.6 million and $26.1 million, respectively. Also, in this submarket, REXR acquired 21022 - 21034 S. Figueroa Street, Carson for $24.2 million, 3901 Via Oro, Long Beach for $20.0 million and 920 E. Pacific Coast Highway, Wilmington for $100.0 million.

In the LA – Central submarket, Rexford acquired 6000-6052 and 6027-6029 Bandini Boulevard, Commerce and Bell, respectively, for $91.5 million. Also, in the City of Industry, located within the San Gabriel Valley submarket, REXR acquired a three-building industrial portfolio for $42.5 million.

With low vacancy rates, these submarkets display 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, industrial real estate is anticipated to benefit from the likely rise in inventory levels over the long haul. This will open prospects for Rexford and other industrial REITs like Prologis (PLD - Free Report) and Terreno Realty Corporation (TRNO - Free Report) .

Rexford is poised to gain traction from its robust market fundamentals, with a low-leverage balance and an impressive acquisition track record.

Shares of Zacks Rank #3 (Hold) REXR have rallied 10.2% so far in the quarter, outperforming the industry’s increase of 1.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment Research
Image Source: Zacks Investment Research

Prologis carries a Zacks Rank of 2 (Buy) at present. Prologis’ long-term growth rate is projected at 9.0%. The Zacks Consensus Estimate for PLD’s 2022 funds from operations per share has been revised marginally upward in the past two months.

Terreno Realty holds a Zacks Rank of 2 at present. The Zacks Consensus Estimate for TRNO’s 2022 FFO per share has been revised a cent upward in the past two months.

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.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Prologis, Inc. (PLD) - free report >>

Terreno Realty Corporation (TRNO) - free report >>

Rexford Industrial Realty, Inc. (REXR) - free report >>

Published in