The Swansea-based outfit currently sit fifth in the table, just five points behind Ulster in fourth.
And with talented youngsters such as Jeff Hassler and Tyler Ardron coming good at the right time, Rees insists the future is bright at the Liberty Stadium.
"Without a doubt we are in the middle of a rebuilding phase," he told Wales Online.
"But we're excited about what we're trying to do here. We are trying to build something for the future.
"We still have a sprinkling of experienced players who can help this young group through, such as Joe Bearman and Duncan Jones, plus top-level and world-class players like Justin Tipuric, Dan Biggar and Alun Wyn Jones.
"Regardless of losing one or two big games against the bigger sides in the league, we are looking at young guys who have really stepped up to the mark athletically.
"We've invested in them and there's a nice blend developing. Hopefully, the group as it is can see us through to a top-four spot this season and still compete and win something this year."
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