Elliott sees options for creating the value of Warehouse Reit Rexford Industrial

Company: Rexford Industrial Realty (Rexr)

Business: Rexford Industrial Realty The reliability of full-service real estate (REIT) is self-managed and self-managed. The company is aimed at having industrial properties in the southern infrastics markets of California. Located in the California industrial estate market, industrial leases, leases and improvements, Rexford Industrial Realty, LP (operation cooperation) and its subsidiaries. The company also acquires or offers mortgage debts or the industrial property or goods that are suitable for industrial development. It offers ownership management services and rental services to the related party owners. Property management services are carrying out property inspections, maintenance and maintenance of repair and maintenance, maintenance of tenants and provide financial and accounting supervision. Its portfolio consisting of 424 properties, approximately 51.0 million square feet.

The stock value: $ 9.47 billion dollars ($ 40.01 per share)

Activist: Elliott investment management

Property: n / a

Average cost: n / a

Activist comments: Elliott is a company of the Multilingual Investment, about $ 76.1 million (from 30 June 2025) and one of its kinds continuously managed. It is well known for its many responsibility and resources, Elliott continues regularly before investment in companies. Elliott is the most active investors in assets, relating to companies with multiple geographies and geography.

What is going on

On August 27, Elliott announced that they have taken a charge at Rexford Industrial Realty.

Behind the scenarios

Rexford has been based on the southern California market. Industry spaces has benefited from a strong secular rate, with an increase in e-commerce, more than a traditional retail business that requires more storage space over time. In addition, Southern California is particularly attractive, with the right, the lack of land, due to the proximity and urban population, as they grow all demand and rental rental. Historically, the main and irreplaceable portfolio is at the top of the market rating, 20-30% Premium negotiation to classmates with adapted funds of assets (NAV) and 8-round-premium, operations (Affo).

However, as we have seen many activists often, they are re-governed, and attract management teams. Rexford is no different. Despite being a California-based business, Maryland is headquartered, management is friendly regulations.

California rebooted in Maryland is not for comfort reasons, but more for training purposes. This type of company that would have a seven-person board for more than 10 years is being more than 10 years and as a team, in the group, almost all were given. After setting up, Reit PlayBook must take debts, give shares and buy as much as possible as possible because it has a level of assets managed by more management managed by the director. In addition, in cocktail festivities and clubs, it is “cool” to manage millions of properties dollars. So since he did in 2013, the company has increased more than 9x. This strategy worked in a large premium when Rexford had a high value of his real estate, but in the end they were captured sales, excited for general and administrative expenses, when worming and enforcement of corporate governance was loaded. (Two for $ 15 million). When the NAV began to decline, this strategy and Rexford negotiate a 20% discount on the NAV and 5-6 discount discount on their stock price, $ 80 in December 2021 in December 2021.

Hopefully for shareholders, the time of change has arrived, because Elliott investment management gave Rexford’s five new positions. This includes at least 5% economic exposure (approximately $ 400 million), seen in the history of Elliott’s investment, their exposure is at least $ 76 million at least $ 76 million.

Elliott has a rich history of driving companies like Rexford, so we hope to defend a better corporate government, better capital allocation and the recovery of the company’s strategic focus to create the value of shareholders.

Although it is important, activism can be challenging in Maryland, it does not act as a prohibition, especially for experienced and committed activists like Elliott. In fact, the tools available to the company that would normally recommend activism are more poison chaiza. According to management, attempts to enter the entrink of an activity would further damage his reputation and accept the case that Elliott changes. So we would expect Elliott to get well in a proxy fight if it has reached here. But we don’t think it will come to that.

When a activist makes it a company, he often puts this company in the pseudo-play, achieving the attention of strategic investors and private equity. This dynamic is even bigger for a company like Rexford, a long time the subject of speculation.

Rexford, their premium assets, consolidation in the reorganization industry and the current discount ratings makes the company a candidate for natural purchase. In addition, Elliott also has a strong history of catalying strategic results.

In America’s Health Trust (Early HTA), Elliott successfully encouraged strategically review, and ultimately HTA and Health care trust To form the largest owner of the US medical office owner

By Rexford’s current 20% discount, we believe that any payments would happen at least Nav, but in a premium, considering the company’s historical assessment and the quality of the portfolio.

If this option was considered to be reliable for investors and Rexford shareholders, Elliott would have been a long-term plan and defending that Elliott would provide the best value for shareholders. The long-term plan would take into account the time and uncertainty that would require the reincarnation of the Council and Management that would think that there would be a purchase in a reasonable premium.

Ken Squire is the founder and president of the 13D monitor, institutional research on shareholder activism and the founder and portfolio of the 13D activist fund, which invests in the 13d investment activist portfolio.