U.S. Markets closed

Rexford (REXR) Boosts Liquidity With Credit Facility Expansion

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Rexford Industrial Realty, Inc. REXR 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. DRE, Prologis PLD and Terreno Realty Corporation TRNO.

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 Research
Zacks Investment Research

Image Source: Zacks Investment Research

Time to Invest in Legal Marijuana

If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.

After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%

You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.

Today, Download Marijuana Moneymakers FREE >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Prologis, Inc. (PLD) : Free Stock Analysis Report

Duke Realty Corporation (DRE) : Free Stock Analysis Report

Terreno Realty Corporation (TRNO) : Free Stock Analysis Report

Rexford Industrial Realty, Inc. (REXR) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research