Rexford Industrial Realty (REXR)
Today, we’re introducing REXR, a U.S.-based real estate company specializing in owning warehouses, logistics hubs, and distribution centers in Southern California.
Strategic Location:
REXR's properties are strategically located near Los Angeles and Long Beach, the two busiest ports in the U.S. These ports handle a significant portion of imports and exports to and from China, Japan, and the entire Asia-Pacific region, making the area the fourth-largest industrial market in the world.
What Does REXR Own?
-720 buildings
-4.7 million sqm of leasable space
Financial Highlights:
Dividend growth: 16% over the past 10 years
Occupancy rate: 96%
REXR also has a proven strategy for renovations and upgrades, often increasing rents by up to 80% after improvements.
Fair Value of the Stock:
Net Asset Value per Share: Approximately $53 – offering a 28% discount!
Additional Highlights:
Planned investments: $1.2 billion annually over the next three years for new buildings and modernizations
Primary Risk:
Geographic Concentration in Southern California.
However, this could turn into an advantage as challenges in navigating the Panama Canal may lead to higher cargo volumes through these ports, increasing demand for warehouse space.
Dividend Yield:
4.4% – While not exceptionally high, the potential for capital gains is significant. Analysts estimate the fair price of the stock to be around $50.
