Rexford Industrial Realty, Inc. REXR recently provided its operating activity update. From the beginning of the fourth quarter through Nov. 14, 2024, the company secured approximately 657,000 square feet of new and renewal leases, with an average lease size of 16,000 square feet. This total encompasses approximately 422,000 square feet of renewal leases and 235,000 square feet of new leases.
When compared to prior rents, comparable rental rates for both new and renewal leases have risen by 80% on a net effective basis and 60% on a cash basis. The average annual rent steps were 3.9% for leases executed since the beginning of the fourth quarter through Nov. 14, 2024.
From the beginning of 2024 through Oct. 31, 2024, the average occupancy for Same Property Portfolio was pinned at 96.8%, while the ending occupancy rate was recorded at 95.9%.
Q3 2024 Activity
In the third quarter of 2024, Rexford experienced decent leasing activity. The company executed 56 new leases encompassing 994,566 square feet and 52 renewal leases totaling 599,259 square feet in the quarter.
As of Sept. 30, 2024, the company's Same Property Portfolio occupancy was 96.7%. Average Same Property Portfolio occupancy for the third quarter was 96.9%. Management expects average Same Property Portfolio occupancy to be between 96.5% and 96.75%.
Wrapping Up
Per a Cushman & Wakefield CWK report, the U.S. industrial real estate market experienced a moderation in demand in the third quarter of 2024. However, as new supply diminishes and demand is expected to recover in the coming year, CWK projects that the vacancy rate will peak at 6.7% by mid-2025, followed by a downward trend.
Going forward, Rexford is poised to grow with a focus on high-quality, irreplaceable portfolio throughout infill Southern California. However, concerns arise with demand remaining somewhat choppy and supply still high.
Over the past six months, shares of this Zacks Rank #4 (Sell) company have lost 9.5% against the industry’s growth of 11.2%.
Image Source: Zacks Investment Research
Stocks to Consider
ome better-ranked stocks from the broader REIT sector are Iron Mountain IRM and Welltower WELL, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Iron Mountain’s 2024 FFO per share is pegged at $4.49, indicating an increase of 9% from the year-ago reported figure.
The Zacks Consensus Estimate for Welltower’s 2024 FFO per share is pinned at $4.26, suggesting year-over-year growth of 17%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpIron Mountain Incorporated (IRM) : Free Stock Analysis Report
Rexford Industrial Realty, Inc. (REXR) : Free Stock Analysis Report
Welltower Inc. (WELL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
