3 Reasons to Buy High-Yield Rexford Stock Like There's No Tomorrow

Core Viewpoint - Rexford Industrial Realty is positioned in a strong market with a competitive dividend yield, making it an attractive option for income-focused investors [1][2]. Group 1: Market Position - Rexford operates in Southern California, a region with a low industrial vacancy rate of approximately 4.8%, compared to the U.S. average of 6.6% [3][4]. - The demand for industrial properties in Southern California remains robust, with vacancy rates fluctuating within a narrow band of around 420 basis points, significantly tighter than the 880 basis points seen in other markets [4]. - Limited supply and a trend of converting industrial properties to other uses, such as housing, further enhance Rexford's market position [5]. Group 2: Financial Performance - In Q3 2025, Rexford signed 69 new leases with an effective rent increase of 25.6% and 54 renewal leases with an average increase of 26.5%, indicating strong demand for its properties [6]. - The REIT's core funds from operations (FFO) increased by 9% year over year in Q3, supported by a high occupancy rate of 96.8%, which is up 60 basis points from the previous quarter [7][8]. Group 3: Dividend Attractiveness - Rexford offers a dividend yield of 4.1%, which is higher than the S&P 500's yield of 1.2% and the average REIT yield of 3.9% [9]. - The company has a strong balance sheet with an FFO payout ratio of approximately 72%, ensuring dividend safety [10]. - The dividend has been increased annually for 12 years, with a total growth of 200% over the past decade, indicating potential for future dividend growth [11].