Published Tue, 05 May 2020 07:01:00 -0400 on Seeking Alpha
REXR has several advantages, but is completely overlooked by most investors.
They deleveraged their balance sheet while driving NAV per share dramatically higher through prudent investment.
The Southern California real estate market for industrial real estate continues to demand premium rents, faster rental rate growth, and high occupancy.
REXR trades right around NAV (net asset value). That's actually quite cheap for them. REITs that regularly grow NAV tend to trade at premiums.
There are some weaker REITs which often trade at huge discounts to NAV. Those weaker REITs tend to deliver much weaker long-term performance.
Rexford Industrial (REXR) has been on our radar for the last year. The main strengths are:
Outstanding property quality in a fragmented market. An edge in evaluating physical real estate and sourcing deals. Exceptional balance sheet, prepared for growth. Strong management team. Shares frequently trade over NAV, enabling accretive growth. The downsides are:
Investors need to accept a high price to FFO multiple and low dividend yield. Investors need to be ready to pay a premium to NAV to open positions. Index Card for REXR
The quick stats are summed up in the index card below:
Source: The REIT Forum
No One Covers REXR
It felt like we never heard other analysts talking about REXR, so we did a quick search on Seeking Alpha. We see a lack of coverage. We scanned for articles which satisfy two traits:
About the common stock (not the preferred stock) Has either a bullish or bearish outlook (no neutral) There were precisely two articles to meet those criteria since June 2015. Why isn’t anyone talking about REXR? They are an outstanding industrial REIT with a common equity market capitalization slightly under $5 billion. That’s big enough to warrant coverage.
To put that in perspective, Plymouth (PLYM) has seven articles since June 2018. PLYM only has a market capitalization for common equity of $215... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|NATIONAL RETAIL PROPERTIES||54.39||35.8||1.52||2.06||3.81|
|EQUITY LIFESTYLE PROPERTIES||132.21||44.7||2.96||2.45||1.90|
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