Comparing Rexford Industrial Realty (REXR) & City Office REIT (CIO)

Rexford Industrial Realty (NYSE:REXR) and City Office REIT (NYSE:CIO) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.

Dividends

Rexford Industrial Realty pays an annual dividend of $0.64 per share and has a dividend yield of 2.0%. City Office REIT pays an annual dividend of $0.94 per share and has a dividend yield of 7.6%. Rexford Industrial Realty pays out 66.7% of its earnings in the form of a dividend. City Office REIT pays out 96.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rexford Industrial Realty has raised its dividend for 2 consecutive years.

Risk and Volatility

Rexford Industrial Realty has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, City Office REIT has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Rexford Industrial Realty and City Office REIT, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rexford Industrial Realty 1 3 3 0 2.29
City Office REIT 0 1 3 0 2.75

Rexford Industrial Realty presently has a consensus price target of $32.00, indicating a potential upside of 1.72%. City Office REIT has a consensus price target of $14.00, indicating a potential upside of 13.54%. Given City Office REIT’s stronger consensus rating and higher possible upside, analysts clearly believe City Office REIT is more favorable than Rexford Industrial Realty.

Earnings and Valuation

This table compares Rexford Industrial Realty and City Office REIT’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rexford Industrial Realty $161.35 million 17.80 $40.71 million $0.96 32.77
City Office REIT $106.49 million 4.18 $5.75 million $0.97 12.71

Rexford Industrial Realty has higher revenue and earnings than City Office REIT. City Office REIT is trading at a lower price-to-earnings ratio than Rexford Industrial Realty, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

99.4% of Rexford Industrial Realty shares are held by institutional investors. Comparatively, 69.2% of City Office REIT shares are held by institutional investors. 1.8% of Rexford Industrial Realty shares are held by insiders. Comparatively, 2.7% of City Office REIT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Rexford Industrial Realty and City Office REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rexford Industrial Realty 20.19% 2.93% 1.72%
City Office REIT 36.89% 17.42% 4.90%

About Rexford Industrial Realty

Rexford Industrial is a real estate investment trust focused on owning and operating industrial properties in Southern California infill markets. The Company owns 166 properties with approximately 20.3 million rentable square feet and manages an 20 properties with approximately 1.2 million rentable square feet.

About City Office REIT

City Office REIT, Inc. (NYSE: CIO) invests in high-quality office properties in mid-sized metropolitan areas with strong economic fundamentals, primarily in the Southern and Western United States. At June 30, 2018, CIO owned office complexes comprising 4.9 million square feet of net rentable area (?NRA?).

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