Rexford Industrial Realty, Inc. (REXR): A Bull Case Theory 

We came across a bullish thesis on Rexford Industrial Realty, Inc. on High Yield Landlord’s Substack by Jussi Askola, CFA. In this article, we will summarize the bulls’ thesis on REXR. Rexford Industrial Realty, Inc.’s share was trading at $42.17 as of October 15th. REXR’s trailing P/E was 30.87 according to Yahoo Finance.

Rexford Industrial (REXR) has drawn significant attention following Elliott Management’s acquisition of a substantial stake, making the activist fund one of the largest investors in the company. Elliott, renowned for targeting undervalued companies and unlocking value through strategic interventions, appears to view Rexford as a high-potential opportunity. While Rexford’s scale—owning roughly $20 billion in properties—makes a full buyout unlikely, the REIT presents multiple avenues for value creation.

The company trades at a meaningful discount to private market valuations despite holding highly desirable, fully built-out assets in strategic locations, with lease rates often below market, offering future upside. Elliott is likely to push management to accelerate capital allocation strategies, specifically through asset sales at private-market values to fund large-scale share buybacks. Such a strategy would be immediately accretive, expanding both FFO and NAV per share, similar to approaches taken by smaller REITs like Farmland Partners and BSR REIT, but on a larger scale given Rexford’s stronger balance sheet.

With a historic low loan-to-value ratio of 25% and limited near-term debt maturities, the REIT could also employ modest leverage to amplify buybacks, securing high-4s interest debt to repurchase shares trading at high-5s yields, generating instant accretion while gradually liquidating assets to repay debt. Early buyback activity of $100 million year-to-date signals initial progress, but Elliott is expected to push for a 5–10x expansion, unlocking meaningful shareholder value and potentially improving market sentiment. Overall, Rexford represents a compelling investment, with activist-driven initiatives likely to accelerate returns while leveraging its strong balance sheet and high-quality property portfolio.

Previously we covered a bullish thesis on Simon Property Group, Inc. (SPG) by David in April 2025, which highlighted its disciplined capital structure, growing dividends, robust free cash flow, and strategic tenant partnerships. The company’s stock price has appreciated approximately by 20.47% since our coverage. The thesis still stands as SPG continues to offer yield and stability. Jussi Askola, CFA shares a similar focus on REITs but emphasizes activist-driven buybacks at Rexford Industrial.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.