**Elliott Investment Management Takes Active Stake in Rexford Industrial Realty**
Elliott Investment Management has acquired an active stake in Rexford Industrial Realty Inc., a Los Angeles-based real estate investment trust (REIT), positioning itself among the top five investors in the company, according to sources familiar with the situation. The specific intentions of Elliott remain unclear at this time. Rexford has not yet responded to requests for comment, and Elliott has declined to provide any statements.
On Wednesday, shares of Rexford saw a notable increase, rising by as much as 6.6%, and were up 5.2% at 10:12 a.m. in New York, bringing the company’s market capitalization to approximately $10 billion. When factoring in debt, Rexford’s enterprise value stands at around $13.4 billion. Analysts have long speculated that Rexford could be a target for acquisition, particularly given the attractiveness of the Southern California market. A Deutsche Bank report from January suggested that interest in Rexford’s portfolio could lead to a bid, as both private and public entities seek to enhance their presence in this lucrative market.
Rexford focuses exclusively on industrial properties in Southern California, which, in terms of square footage, ranks as the fourth-largest industrial market globally, trailing only the entire United States, China, and Japan. Its strategic location near two major ports further solidifies its role as a critical hub for goods movement.
Earlier this month, Jonathan Litt’s Land & Buildings Investment Management disclosed a passive stake in Rexford, highlighting the growing interest in the REIT sector. Elliott is known for its activist approach to public companies but also engages directly in real estate equity and high-yield debt investments. This year, it participated in the privatization of Vancouver-based City Office REIT Inc. and reportedly acquired debt linked to a San Francisco office tower.
Elliott’s influence extends to other REITs as well; it is one of the ten largest shareholders in Equinix Inc. and has urged the data center REIT to implement measures to enhance its stock price. Additionally, telecommunications company Crown Castle Inc. initiated a review of its fiber business in 2023 as part of an agreement with Elliott, which secured board seats at the Houston-based REIT.
Rexford, which went public in 2013, has been actively expanding its warehouse portfolio through acquisitions, including a significant $1 billion deal with Blackstone Real Estate in 2024. The company is led by co-CEOs Howard Schwimmer and Michael Frankel. In a related development, smaller competitor Plymouth Industrial REIT Inc. received an unsolicited takeover offer from Sixth Street Partners earlier this year.
**FAQ**
*What is the significance of Elliott Investment Management’s stake in Rexford Industrial Realty?*
Elliott’s active stake in Rexford positions it as a major player in the REIT sector, potentially influencing the company’s strategic direction and future growth, especially in the attractive Southern California industrial market.
