UPDATE: MLV & Co Initiates Coverage on Rexford Industrial Realty with Buy Rating, $17 PT on Unique Investment Opportunity

In a report published Tuesday, MLV & Co analyst Jonathan Petersen initiated coverage on

with a Buy rating and $17.00 price target. In the report, MLV & Co noted, “We are initiating on REXR with a BUY rating and a 12-month price target of $17, which is based on a strong fundamental outlook for the Los Angeles warehouse market and the potential upside from the company's acquisition strategy. The rise of global trade in recent decades has turned the LA warehouse market into the largest in the country, and has resulted in a lack of developable land in LA County -- this has naturally led to high occupancy and above average rent growth for the past 30+ years. While REXR is not the only Industrial REIT with properties in the market, they are the only one headquartered there, which allows the company to be an operational sharpshooter. REXR often takes a value-add approach to acquisitions, which allows the company to achieve higher acquisition yields on stabilization, but often means that properties are under-leased. The company's current vacancy of 9.5% compares to market vacancy of 2.0% -- closing this gap is a reasonable assumption and should lead to significant FFO and NAV accretion.” Rexford Industrial Realty closed on Monday at $14.30.