REXR
Rexford Industrial Realty, Inc.
$36.18
Real Estate Investment Trust
85%
P/FFO × Industrial REIT Multiple
Moderate
·
Conviction
Undervalued
Trading 38.7% below fair value
You pay
$36.18
Bear
$48.31
Fair
$59.05
Bull
$69.78
Bear
$48.31
+33.5%
$2.28 FFO × 23x
Fair
$59.05
+63.2%
$2.28 FFO × 29x
Bull
$69.78
+92.9%
$2.28 FFO × 34x
Key Value Driver
FFO/share ($2.28) × industrial P/FFO multiple
Implied Market Multiple
15.9x
Summary
Our base-case estimate uses P/FFO × Industrial REIT Multiple. We then blend that result with the average analyst price target of $40.40 from 21 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $59.05 per share.
Warnings
Standard profit figures are misleading for real estate companies — large non-cash accounting charges make profits look artificially low. Dividend yield and funds from operations are better measures.
Wall Street's average price target is $40.40 (from 21 analysts). Our estimate is 62% above the consensus -- consider that gap carefully.
Key Risks
- P/E and EV/EBITDA are structurally wrong for REITs — use P/FFO and NAV
- Interest rate sensitivity: REIT multiples compress when rates rise
- FFO approximation (NI + D&A) may include gains on property sales — verify