REXR Stock Forecast & Price Target

Rexford Industrial Realty has demonstrated a solid increase in same-property occupancy, rising by 50 basis points to 96.6% as of August 31, marking a continuous improvement from the previous quarter. This increase includes 40 basis points of positive net absorption, indicating strong demand for industrial spaces, despite a small decrease from two vacant property dispositions. Additionally, projected funds from operations per share (FFOPS) forecasts for 2025, 2026, and 2027 have been revised upwards, reflecting a positive trend in financial performance with estimates moving from $2.39/$2.43/$2.47 to $2.40/$2.47/$2.52, respectively.

Rexford Industrial Realty faces a challenging outlook due to the potential for a recession-like environment, which could lead to diminished demand for industrial space and adversely impact overall business activity. The company's growth strategy may be hindered by a lack of acquisition opportunities and the prospect of sustained high interest rates, which could devalue REIT stocks across the sector. Additionally, factors such as nearshoring, reduced goods throughput at West Coast Ports, and declining institutional and foreign capital flows contribute to a risk of underperformance in the Southern California industrial real estate market.