Elliott Investment Management has taken a significant active stake in Rexford Industrial Realty, making the hedge fund one of the top five investors in the $9.9bn Los Angeles-based REIT, according to a report by Bloomberg citing unnamed people familiar with the matter.
Elliott’s intentions have not yet been disclosed.
Rexford shares rose 4.4% on Wednesday, paring some of their 23% loss over the past year, which has left the REIT underperforming the broader US REITs index. Analysts have long flagged Rexford – which controls a concentrated portfolio of industrial real estate in Southern California – as a likely takeover target, given sustained demand for warehouse space near the region’s ports and distribution hubs.
The move adds Rexford to a growing list of real estate bets by Elliott, which has emerged as an influential activist across the sector. The hedge fund recently pushed data-centre REIT Equinix to take steps to boost its valuation, and secured board seats at Crown Castle as part of a fibre review agreement. It was also involved in the take-private of City Office REIT earlier this year and has invested directly in high-yield debt tied to commercial real estate.
Elliott has a track record of catalysing consolidation – its past REIT campaigns have included Healthcare Trust of America’s merger with Healthcare Realty Trust in 2022 and the $11bn sale of Switch Inc to DigitalBridge and IFM Investors.
Rexford, which went public in 2013 and is led by co-CEOs Howard Schwimmer and Michael Frankel, expanded its portfolio with a $1bn acquisition from Blackstone in 2024. Its regional rival Plymouth Industrial REIT attracted an unsolicited bid from Sixth Street earlier this year, underscoring the strategic interest in industrial platforms.
