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Rexford Industrial Realty, Inc. (REXR - Free Report) recently announced shelling out $163.8 million for the acquisition of four industrial properties in prime infill Southern California submarkets. With these buyouts, Rexford’s investments reached $774 million so far in the year. Also, more than $600 million in additional investments are 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 supply constraints in the United States.
The abovementioned properties, acquired in May and June through off-market transactions, were funded using a combination of cash on hand, the company's line of credit and units in the company's operating partnership.
Within the LA - South Bay submarket, Rexford acquired 2020 South Central Avenue, Compton for $10.8 million. In the LA - San Fernando Valley submarket, REXR acquired 14200-14220 Arminta Street, Panorama City for $90.2 million and in the Inland Empire – West submarket, it acquired 1172 Holt Boulevard, Ontario for $17.8 million. Also, the company purchased 1500 South Raymond Avenue, Fullerton within the North Orange County submarket for $45 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, logistics real estate is anticipated to benefit from the likely rise in inventory levels over the long haul, thereby opening 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, fortress-like balance sheet and an impressive acquisition track record.
Prologis carries a Zacks Rank of 2 at present. Prologis’ long-term growth rate is projected at 9.8%.
The Zacks Consensus Estimate for PLD’s 2022 funds from operations (FFO) per share has been revised marginally upward in a month.
Terreno Realty holds a Zacks Rank of 2 at present. Terreno Realty’s 2022 revenues are expected to increase 17.5% year over year.
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.
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Rexford (REXR) Expands Portfolio, '22 Investments Reach $774M
Rexford Industrial Realty, Inc. (REXR - Free Report) recently announced shelling out $163.8 million for the acquisition of four industrial properties in prime infill Southern California submarkets. With these buyouts, Rexford’s investments reached $774 million so far in the year. Also, more than $600 million in additional investments are 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 supply constraints in the United States.
The abovementioned properties, acquired in May and June through off-market transactions, were funded using a combination of cash on hand, the company's line of credit and units in the company's operating partnership.
Within the LA - South Bay submarket, Rexford acquired 2020 South Central Avenue, Compton for $10.8 million. In the LA - San Fernando Valley submarket, REXR acquired 14200-14220 Arminta Street, Panorama City for $90.2 million and in the Inland Empire – West submarket, it acquired 1172 Holt Boulevard, Ontario for $17.8 million. Also, the company purchased 1500 South Raymond Avenue, Fullerton within the North Orange County submarket for $45 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, logistics real estate is anticipated to benefit from the likely rise in inventory levels over the long haul, thereby opening 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, fortress-like balance sheet and an impressive acquisition track record.
Shares of Zacks Rank #2 (Buy) REXR have surged 12% over the past year against the industry’s decline of 3.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Prologis carries a Zacks Rank of 2 at present. Prologis’ long-term growth rate is projected at 9.8%.
The Zacks Consensus Estimate for PLD’s 2022 funds from operations (FFO) per share has been revised marginally upward in a month.
Terreno Realty holds a Zacks Rank of 2 at present. Terreno Realty’s 2022 revenues are expected to increase 17.5% year over year.
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.