REXR Stock Forecast & Price Target

Rexford Industrial Realty reported a substantial increase in same property occupancy, rising 50 basis points to 96.6%, which reflects both positive net absorption and a strategic reduction of vacant properties. The company's ability to achieve a year-to-date average occupancy of 96.1% demonstrates its strong position within the crowded Southern California industrial market. Furthermore, the upward revisions in forward funds from operations per share estimates for 2025E to 2027E indicate robust financial health and promising growth prospects for shareholders.

Rexford Industrial Realty faces significant challenges stemming from a projected deep recession-like environment, which would undermine business activity and lower demand for industrial space in Southern California. The company may struggle to execute its growth strategy due to a lack of acquisition opportunities and the potential for sustained high interest rates, which can lead to declining valuations across REIT stocks. Additionally, shifting dynamics such as nearshoring/onshoring and declining institutional capital flows could negatively impact the company's performance, particularly in a market already facing slowing rent growth and increased availability rates.