Truist Securities reiterates Buy rating on Rexford Industrial stock despite sector concerns

Published 17/07/2025, 11:44
Truist Securities reiterates Buy rating on Rexford Industrial stock despite sector concerns

Investing.com - Truist Securities has maintained its Buy rating and $37.00 price target on Rexford Industrial Realty (NYSE:REXR) following the company’s quarterly results that exceeded expectations despite challenging market conditions. The company, currently trading at $36.32, has demonstrated consistent dividend performance, having maintained payments for 13 consecutive years, according to InvestingPro data.

The industrial real estate investment trust reported funds from operations (FFO) of $0.59 per share, surpassing both the Street consensus of $0.58 and Truist’s estimate of $0.57. The outperformance was primarily driven by higher interest income and lower expenses, according to Truist analyst commentary. With an impressive revenue growth of 18% over the last twelve months and a GOOD Financial Health rating from InvestingPro, the company continues to demonstrate operational strength.

Rexford maintained its full-year guidance, with lower interest expense helping to offset delays in rent commencement across its redevelopment and repositioning pipeline. The company executed approximately 520,000 square feet of leasing in that pipeline during and after the quarter, though tenant commitment remains slow.

Same-store occupancy ended at 96.1%, marking a 40 basis point increase quarter-over-quarter—the first sequential growth in a year. Blended cash spreads were 8.1% (20.9% GAAP), below the full-year guidance of 15% cash and 25% GAAP, weighed down by older leases signed in 2019-2021.

GAAP market rents declined 3.5% quarter-over-quarter and 12.8% year-over-year, compared to previous declines of 2.8% and 9.4%, respectively. New disclosure shows cash mark-to-market is down to approximately $20 million versus $60 million in the previous quarter. For deeper insights into Rexford’s valuation and performance metrics, including exclusive ProTips and comprehensive analysis, explore the detailed Research Report available on InvestingPro.

In other recent news, Rexford Industrial Realty reported second-quarter earnings that significantly exceeded analyst expectations, largely due to strong leasing activity and rising rental rates in its Southern California portfolio. The company posted net income attributable to common stockholders of $0.48 per diluted share, which was notably higher than the analyst estimate of $0.25. Revenue also surpassed expectations, coming in at $249.51 million compared to the consensus estimate of $245.12 million. Rexford executed 1.7 million square feet of new and renewal leases during the quarter, with rental rates increasing by 20.9% on a net effective basis. The company’s Same Property Portfolio NOI increased 1.1% year-over-year, while occupancy rose to 96.1%. Additionally, Rexford sold two properties for $81.6 million, achieving a 12.8% unlevered internal rate of return. The firm maintained a conservative financial position with a Net Debt to Enterprise Value ratio of 25.0%. Rexford also reaffirmed its full-year 2025 guidance for Core FFO per diluted share, while updating its net income guidance to a range of $1.38 to $1.42 per diluted share.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.