Rexford Industrial Realty, Inc. (NYSE: REXR)

Sector: Real Estate Industry: REIT - Industrial CIK: 0001571283
Market Cap 8.74 Bn
P/B 1.03
P/E 43.69
P/S 8.72
ROIC (Qtr) 2.47
Div Yield % 4.58
Rev 1y % (Qtr) 2.14
Total Debt (Qtr) 3.25 Bn
Debt/Equity (Qtr) 0.38
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About

Rexford Industrial Realty, Inc., a Maryland corporation and commonly recognized by the stock symbol REXR, operates in the real estate investment trust (REIT) industry, specifically focusing on industrial properties in Southern California infill markets. The company's primary business objective is to generate attractive risk-adjusted returns for its stockholders through dividends and capital appreciation. Rexford Industrial Realty's main business activities involve owning, operating, and acquiring industrial properties, employing an intensive asset...

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Investment thesis

Bull case

  • Operating cash flow of 542.09M provides exceptional 70.09x coverage of minority interest expenses 7.73M, showing strong core operations.
  • Robust free cash flow of 417.02M exceeds capital expenditure of 125.06M by 3.33x, indicating strong organic growth funding capability.
  • Strong tangible asset base of 12.47B provides 3.83x coverage of total debt 3.25B, indicating robust asset backing and low credit risk.
  • Strong operating cash flow of 542.09M provides 6.87x coverage of SG&A expenses 78.86M, showing efficient operational cost management.
  • Tangible assets of 12.47B provide exceptional 140.43x coverage of deferred revenue 88.78M, showing strong service capability backing.

Bear case

  • Operating cash flow of 542.09M barely covers its investment activities of (125.06M), with a coverage ratio of -4.33, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 542.09M provides thin coverage of dividend payments of (412.62M) with a -1.31 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 417.02M represents just -3.78x of debt issuance (110.33M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating earnings of 316.93M show weak coverage of depreciation charges of 315.92M, with a 1 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 315.92M relative to operating cash flow of 542.09M, which is 0.58x suggests significant maintenance capital requirements affecting free cash flow.

Peer comparison

Companies in the REIT - Industrial
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 PLD Prologis, Inc. 131.57 Bn 39.60 14.97 35.04 Bn
2 PSA Public Storage 52.97 Bn 33.41 10.98 10.25 Bn
3 EXR Extra Space Storage Inc. 15.99 Bn 113.72 34.08 13.66 Bn
4 LINE Lineage, Inc. 10.60 Bn -59.87 1.98 7.77 Bn
5 EGP Eastgroup Properties Inc 10.17 Bn 39.51 14.10 1.63 Bn
6 REXR Rexford Industrial Realty, Inc. 8.74 Bn 43.69 8.72 3.25 Bn
7 FR First Industrial Realty Trust Inc 7.95 Bn 32.11 10.93 2.57 Bn
8 STAG STAG Industrial, Inc. 7.19 Bn 26.29 8.50 3.29 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.93 1.14
EV to Cash from Ops. EV/CFO 21.55 24.26
EV to Debt EV to Debt 3.59 3.22
EV to EBIT EV/EBIT 36.85 50.75
EV to EBITDA EV/EBITDA 19.23 19.38
EV to Free Cash Flow [EV/FCF] EV/FCF 28.01 -0.63
EV to Market Cap EV to Market Cap 1.34 1.57
EV to Revenue EV/Rev 11.64 12.09
Price to Book Value [P/B] P/B 1.03 2.55
Price to Earnings [P/E] P/E 43.69 22.14
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.47 -0.46
Dividend Payout Ratio % Div Payout % (Qtr) 200.00 34.94
Dividend per Basic Share Div per Share (Qtr) 1.72 3.19
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 95.88 25.32
Interest Coverage Int. cover (Qtr) 3.02 3.92
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 93.19 -38.11
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 196.19 19.56
Dividend Growth (1y) % Div 1y % (Qtr) 2.99 41.56
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -14.89 27.07
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -5.67 9.45
EBIT Growth (1y) % EBIT 1y % (Qtr) -14.89 22.14
EBT Growth (1y) % EBT 1y % (Qtr) -22.56 19.88
EPS Growth (1y) % EPS 1y % (Qtr) -28.33 14.36
FCF Growth (1y) % FCF 1y % (Qtr) 130.73 -604.79
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 6.78 3.65
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.08 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.63 0.34
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.06
Debt to Equity Ratio Debt/Equity (Qtr) 0.38 1.46
Interest Cover Ratio Int Coverage (Qtr) 3.02 3.92
Times Interest Earned Times Interest Earned (Qtr) 3.02 3.92
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 63.10 67.77
EBIT Margin % EBIT Margin % (Qtr) 31.59 40.11
EBT Margin % EBT Margin % (Qtr) 21.14 24.24
Gross Margin % Gross Margin % (Qtr) 77.30 76.41
Net Profit Margin % Net Margin % (Qtr) 20.00 22.54