REXR Stock Forecast & Price Target

Rexford Industrial Realty has demonstrated impressive operational performance, evidenced by a 50 basis point increase in same property occupancy to 96.6%, bolstered by positive net absorption of 40 basis points. The company's strong occupancy metrics, with a year-to-date average of 96.1%, indicate robust demand for industrial properties in Southern California infill markets. Additionally, the upward revision of the funds from operations per share (FFOPS) estimates for the next three years reflects improved financial expectations, with anticipated figures rising from $2.39 to $2.40 in 2025.

The analysis indicates a negative outlook for Rexford Industrial Realty's stock driven by several fundamental concerns. Firstly, a potential deep recession could diminish business activity and reduce demand for industrial space, exacerbated by declining institutional and foreign capital flows impacting overall REIT investments. Additionally, persistent high interest rates may depress valuations for REITs, while trends in nearshoring/onshoring could negatively affect goods throughput at West Coast ports, leading to an anticipated decline in the need for industrial properties in Southern California markets.