Land & Buildings Just Ditched Rexford—Should REIT Investors Care?

REXR +1.40%

Key Points

• Exited 561,113 shares, a net position decrease of $19,958,789

• After the sale, the fund reported zero Rexford shares and $0 position value

• The Rexford holding was previously 3.98% of the fund’s AUM in the prior quarter

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Land & Buildings Investment Management, LLC recently sold out its entire stake in Rexford Industrial Realty, reducing exposure by almost $20 million.

What happened

According to a Securities and Exchange Commission (SEC) filing dated November 14, 2025, Land & Buildings Investment Management, LLC eliminated its position in Rexford Industrial Realty (NYSE:REXR), selling all 561,113 shares previously held.

The estimated value of the stake exited was $19,958,789, based on quarterly average pricing. The fund's total reported U.S. equity holdings stood at approximately $544.91 million across 22 positions after the trade.

What else to know

The fund fully liquidated its Rexford holding, which had accounted for 3.98% of assets under management in the previous quarter; post-sale, Rexford represented 0% of the portfolio.

Top holdings after the period include:

• AHR: $48.4 million (8.9% of AUM)

• SPG: $38.70 million (7.1% of AUM)

• FR: $36.6 million (6.7% of AUM)

• VTR: $36.5 million (6.7% of AUM)

• FUN: $36 million (6.6% of AUM)

As of November 24, 2025, Rexford shares were priced at $40.84, up 5.6% year-to-date, trailing the S&P 500 by 8.2 percentage points. The current dividend yield stands at 4.19%.

Company Overview

Metric

Value

Price (as of November 24, 2025)

$40.84

YTD Performance

5.6%

Dividend Yield

4.19%

Company Snapshot

• Rexford Industrial Realty, Inc. is a leading industrial REIT focused on infill markets across Southern California, leveraging a large, diversified portfolio to meet the needs of logistics and distribution tenants.

• Owns and operates industrial real estate properties, generating revenue primarily through rental income.

• Operates as a real estate investment trust (REIT), acquiring, leasing, and managing infill industrial assets to maximize cash flow and long-term value.

• Serves a broad tenant base, including logistics, distribution, and manufacturing companies seeking industrial space in high-demand urban markets.

Foolish take

Land & Buildings Investment Management completely sold off its stake in Rexford Industrial Realty. That's a major move and a notable shift in its real estate allocation, especially since that position was so large just a quarter ago. Rexford is still a powerhouse industrial REIT, focused on Southern California—a market whose long-term outlook is generally supported by tight supply and constant demand for infill space.

But here's the reality: REITs have been under pressure because of higher interest rates and slower transaction activity. When a fund decides to step aside, it's often a signal about reassessing relative value, not necessarily a negative judgment on the company itself. The stock has been posting modest gains this year, which is less than the broader market, but its dividend yield provides a reliable stream of income for patient investors.

Industrial real estate tied to logistics and distribution ultimately has strong tailwinds behind it. The core question now is whether Rexford can keep growing its cash flow in a high-rate environment, and whether the general market sentiment will eventually align with its long-term strategy.

Glossary

Assets Under Management (AUM): The total market value of investments managed by a fund or investment firm.

13F Reportable Assets: Securities that institutional investment managers must disclose quarterly to the SEC if above a certain threshold.

Liquidated: Sold off an entire investment position, converting it to cash or cash equivalents.

Dividend Yield: Annual dividends paid by a company divided by its share price, shown as a percentage.

Trailing Twelve Months (TTM): The 12-month period ending with the most recent quarterly report.

Real Estate Investment Trust (REIT): A company that owns, operates, or finances income-producing real estate and distributes most income as dividends.

Infill Industrial Assets: Industrial properties located within established, densely populated urban areas, often with high demand for logistics.

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Adam Palasciano has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Simon Property Group and Six Flags Entertainment. The Motley Fool has a disclosure policy.

Land & Buildings Just Ditched Rexford—Should REIT Investors Care? was originally published by The Motley Fool