Rexford Industrial: Smooth Seas Never Made A Skilled Sailor

REITer's Digest 4.54K Followers Follow Summary REXR earns a Buy rating as management navigates a challenging Southern California industrial market with prudent balance sheet actions. REXR is executing a major strategic overhaul, raising its 2024 asset disposition target to $2 billion and launching a $1 billion share repurchase program. Despite headline GAAP losses from asset sales, REXR maintains stable cash flow and conservative leverage, prioritizing debt repayment and equity buybacks over growth. Operational softness persists, with 1.5% Q2 same-property NOI growth and slightly negative full-year NOI projected, but occupancy trends and long-term supply dynamics are supportive. MR1805/iStock via Getty Images Industrial real estate continues to be a tale of two cities. It 's been more than a year since I assigned a Strong Buy rating to Rexford Industrial ( REXR ), and it's high time for This article was written by REITer's Digest 4.54K Followers Follow REITer's Digest Analyst’s Disclosure: I/we have a beneficial long position in the shares of REXR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.