Chicago-based Duff & Phelps Investment Management cut its stake in Rexford Industrial Realty (REXR 1.19%) by 1.79 million shares in the third quarter, contributing to a reduction in exposure of about $57.39 million.
What Happened
According to a filing with the Securities and Exchange Commission dated November 13, Duff & Phelps Investment Management sold 1.79 million shares of Rexford Industrial Realty (REXR 1.19%) during the third quarter. The divestment lowered the fund’s position from 1.22% of assets under management in the previous quarter to 0.53% as of September 30.
What Else to Know
The fund’s Rexford stake after the sale is 1.13 million shares, representing 0.53% of AUM, which places it outside the fund’s top five holdings.
Top holdings after the filing:
- NYSE: WELL: $446.07 million (5.08% of AUM)
- NASDAQ: EQIX: $342.09 million (3.90% of AUM)
- NYSE: PLD: $340.35 million (3.88% of AUM)
- NYSE: DLR: $239.48 million (2.73% of AUM)
- NYSE: SRE: $192.85 million (2.20% of AUM)
As of Monday, REXR shares were priced at $38.75, roughly flat over the past year and well underperforming the S&P 500, which is instead up about 15.5%.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $997.93 million |
| Net Income (TTM) | $339.64 million |
| Dividend Yield | 4.4% |
| Price (as of Monday) | $38.75 |
Company Snapshot
Rexford Industrial Realty, Inc. is a leading industrial REIT focused on high-demand infill markets in Southern California. It owns and operates industrial real estate properties, primarily in Southern California infill markets, generating revenue through rental income from hundreds of properties. Rexford operates as a REIT, acquiring, managing, and leasing industrial facilities to maximize occupancy and rental yields. The company serves a diverse base of industrial tenants, including logistics, distribution, manufacturing, and e-commerce companies seeking strategic access to major transportation corridors and dense population centers.
Foolish Take
Rexford continues to post solid operating results, but it seems like this fund is clearly reassessing how much upside remains after years of outperformance.
In the third quarter, Rexford generated $0.60 in core funds from operations per diluted share, up 1.7% year over year, while total portfolio NOI rose 2.9% and occupancy stayed high at 96.8%. The balance sheet also remained in solid shape, with net debt to enterprise value around 23% and no significant maturities until 2027. Those are not numbers that suggest operational distress, but they do point to a company maturing.
Meanwhile, Rexford repurchased $150 million of stock during the quarter at an average price near $39, signaling management’s view that shares were undervalued. Yet for diversified managers, opportunity cost matters. Compared with larger holdings like Welltower, Prologis, or Equinix, Rexford offers less exposure to secular growth themes like data, healthcare, or global logistics.
Glossary
Assets Under Management (AUM): The total market value of investments managed by a fund or investment firm.
13F Reportable Assets: Securities holdings that institutional investment managers must disclose quarterly to the SEC on Form 13F.
Divestment: The process of selling an asset or investment, often to reduce exposure or reallocate capital.
Real Estate Investment Trust (REIT): A company that owns, operates, or finances income-producing real estate and distributes most income as dividends.
Infill Markets: Developed urban areas where new properties are built within existing infrastructure, often with high demand and limited space.
Occupancy: The percentage of rentable space in a property that is currently leased to tenants.
Dividend Yield: A financial ratio showing how much a company pays in dividends each year relative to its share price.
Rentable Square Feet: The total area within a property that can be leased to tenants and generates rental income.
TTM: The 12-month period ending with the most recent quarterly report.
