Rexford downgraded to Neutral at BofA on slower-than-expected LA recovery

As previously reported, BofA downgraded Rexford Industrial (REXR) to Neutral from Buy with a price target of $49, down from $66, citing a slower-than-expected demand recovery in its Los Angeles markets. The firm had previously walked away from its September Global Real Estate conference encouraged LA was seeing “signposts of stabilization,” but based on Rexford’s latest results and update the firm now believes challenges will persist longer-than-expected in LA, the analyst tells investors. The firm is taking down its 2025 estimates by 6% and raising its forward applied cap rate by 50 basis points to reflect lower growth, leading to its lower price target the analyst noted.