REXR Stock Forecast & Price Target

Rexford Industrial Realty has demonstrated a positive trend in occupancy rates, achieving a same property portfolio occupancy of 96.6% as of August 31, reflecting a 50 basis point increase since June 30, supported by 40 basis points of positive net absorption. The year-to-date average occupancy rate has also improved to 96.1%, indicating strong demand for industrial properties in its targeted Southern California infill markets. Additionally, the projected increase in Funds From Operations Per Share (FFOPS) estimates for 2025, 2026, and 2027 further underscores the company's capacity to generate attractive risk-adjusted returns for its stockholders.

Rexford Industrial Realty’s negative outlook is primarily driven by a potential deep recession-like environment that could weaken business activity, resulting in lower demand for industrial space. Additionally, the company's growth strategy may be hindered by a lack of acquisition opportunities and the risk of lower West Coast Port goods throughput due to nearshoring/onshoring trends, affecting the overall industrial space needs in Southern California. Furthermore, the possibility of sustained high-interest rates may depress valuations across REIT stocks, compounded by a decline in institutional and foreign capital flows, which typically impacts the performance of real estate investment trusts.