Rexford vs W.P. Carey: Industrial REIT Showdown

Investors weigh Rexford and W.P. Carey, two distinct REITs. Rexford’s focus on Southern California contrasts with W.P. Carey's diversification strategy. Concerns arise over their growth prospects and dividend dynamics.

Date: 16-02-2025

AI Rating: 5

Earnings Per Share (EPS): The report does not provide direct information regarding earnings per share for either Rexford Industrial or W.P. Carey, indicating a lack of specific figures to evaluate.

Revenue Growth: Rexford recently experienced a slowdown in its rental growth rate, which was noted to contribute to a 50% decline in its share price since 2022. Despite this, Rexford managed only a 30% increase in rents, down from over 80% post-pandemic. Investors may find this concerning as it reflects a potential stagnation in revenue growth.

Net Income: The report does not present specific details regarding net income for either company, leaving investors without key insights into profitability and overall financial health.

Profit Margins (Gross, Operating, Net): There is a lack of information regarding profit margins in the analysis. Thus, investors cannot gauge how efficiently either REIT is operating.

Free Cash Flow (FCF): No information regarding free cash flow was provided in the report, making it difficult to assess the cash available for distributions or reinvestments.

Return on Equity (ROE): Similarly, there is no mention of return on equity, leaving investors without a metric to judge how well each REIT is using equity to generate profits.

Overall Investment Sentiment: The report suggests that while Rexford could attract aggressive investors despite its declining growth rate and high yield (4.1%), W.P. Carey might suit more conservative investors with its diversification and history of dividend increases. However, concerns about Rexford's slowing rental growth and W.P. Carey's past dividend cut remain prevalent.

Stocks: REXR WPC