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Rexford (REXR) Boosts Portfolio, '22 Investments Reach $610M

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Rexford Industrial Realty, Inc. REXR recently announced shelling out $152.7 million to acquire six industrial properties in prime infill Southern California submarkets. With these buyouts, Rexford’s 2022 investments reached $610 million. Also, more than $500 million in additional investments are under contract or accepted offer.

Reflecting positive sentiments, shares of REXR were up marginally during Wednesday’s trading session.

The abovementioned properties, acquired in April and May through off-market and lightly marketed transactions, were funded using a combination of cash on hand and the company's line of credit. 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.

According to Howard Schwimmer and Michael Frankel, co-chief executive officers of Rexford, "Acquired through off-market and lightly marketed transactions, these investments demonstrate the strength of Rexford Industrial's differentiated operating platform.”

Within the LA – San Fernando Valley submarket, Rexford acquired 7815 Van Nuys Boulevard, Panorama City, CA for $25 million and 900-920 Allen Avenue, Glendale, CA for $25 million.

In the Inland Empire – West submarket, REXR acquired 1154 Holt Boulevard, Ontario, for $14.2 million, 1550-1600 Champagne Avenue, Ontario, for $46.9 million and 10131 Banana Avenue, Fontana, CA for $26.2 million. Also, the company purchased 13535 Larwin Circle, Santa Fe Springs, within the LA – Mid-Counties submarket, for $15.5 million.

With low vacancy rates, these submarkets display solid demand for industrial real estate properties.

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 Terreno Realty Corporation TRNO and Prologis PLD.

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 26.1% over the past year against the industry’s decline of 2.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Prologis carries a Zacks Rank of 3 (Hold) at present. Prologis’ long-term growth rate is projected at 9.3%.

The Zacks Consensus Estimate for PLD’s 2022 funds from operations (FFO) per share has been revised 1.4% 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 month.

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

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