Duff & Phelps Cuts Rexford Stake by $57.39 Million in Q3
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3h ago
0mins
Source: Fool
- Stake Reduction: Duff & Phelps sold 1.79 million shares of Rexford Industrial Realty in Q3, reducing its stake from 1.22% to 0.53%, which translates to a $57.39 million decrease in exposure, indicating a reassessment of the company's growth potential.
- Holding Status: Post-divestment, the fund holds 1.13 million shares of Rexford, which is no longer among its top five holdings, reflecting a diminished focus on the company that could impact the diversity of its investment portfolio.
- Company Performance: Despite Rexford's Q3 core funds from operations rising 1.7% to $0.60 per share and total portfolio NOI increasing by 2.9%, its stock price has remained flat, underperforming the S&P 500's 15.5% gain, suggesting market caution regarding its future growth.
- Stock Buyback: Rexford repurchased $150 million of its stock at an average price near $39 during the quarter, signaling management's belief that shares are undervalued, yet compared to larger holdings, Rexford appears to offer limited growth potential, which may affect investor confidence.
REXR
$38.97+Infinity%1D
Analyst Views on REXR
Wall Street analysts forecast REXR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for REXR is 44.70 USD with a low forecast of 38.00 USD and a high forecast of 50.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
3 Buy
8 Hold
1 Sell
Hold
Current: 39.440
Low
38.00
Averages
44.70
High
50.00
Current: 39.440
Low
38.00
Averages
44.70
High
50.00
About REXR
Rexford Industrial Realty, Inc. is a self-administered and self-managed full-service real estate investment trust (REIT). The Company is focused on owning, operating and acquiring industrial properties in Southern California infill markets. It acquires, owns, improves, redevelops, leases, and manages industrial real estate principally located in Southern California infill markets, through Rexford Industrial Realty, L.P. (Operating Partnership) and its subsidiaries. The Company also acquires or provides mortgage debt secured by industrial zoned property or property suitable for industrial development. It provides property management services and leasing services to related party property owners. Its property management services include performing property inspections, monitoring repairs and maintenance, maintaining tenant relations and providing financial and accounting oversight. Its portfolio consists of 424 properties with approximately 51.0 million rentable square feet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
