LaSalle cuts positions in 26 REITs but bolsters Healthpeak Properties in Q2

LaSalle Investment Management Securities LLC slashed its share count in more than half of its US real estate investment trust holdings and exited four other REIT positions during the second quarter, according to the firm's most recent investor filing.

Four exits, 26 stake cuts

The investment firm completely sold out its stake in four REITs during the second quarter. The largest was its stake in single-tenant REIT NNN REIT Inc., valued at $52.7 million the quarter prior. LaSalle's three other exits were office REITs Douglas Emmett Inc. and Corporate Office Properties Trust, valued at $12.8 million and $11.3 million, respectively, as well as a $487,000 position in industrial-focused Terreno Realty Corp.

The firm also sold shares in 26 of its remaining 45 investments. LaSalle slashed its share count in office REIT Highwoods Properties Inc. by more than half to 432,618 shares, valued at $10.3 million, from 886,827 shares in the previous quarter.

Some of the positions in which the firm cut share count 10% or more included shopping center-focused Urban Edge Properties, advertising REIT OUTFRONT Media Inc., self-storage-focused CubeSmart and hotel owner Host Hotels & Resorts Inc.

Triples stake in Healthpeak Properties, 2 initiations

LaSalle boosted share count in 15 existing positions. The firm augmented share count in healthcare-focused Healthpeak Properties Inc. by more the threefold, raising the REIT's ranking to LaSalle's 42nd largest holding by market value at $4.8 million as of June 30, from its prior ranking of No. 44.

The investment firm hiked its share count in office REIT Alexandria Real Estate Equities Inc. by 86.9% to 360,031 shares, valued at $40.9 million as of June 30. During the same period, the firm upped its share count in communications-focused American Tower Corp. by 43.9% to 601,810 shares and in shopping center REIT Retail Opportunity Investments Corp. by 41.1% to over 3 million shares.

– View LaSalle's history of public share holdings. – Read some of the day's top real estate news and insights from S&P Global Market Intelligence.

The asset manager added two new positions to its investment portfolio during the second quarter. The largest new stake by market value was a $24.8 million position in single tenant REIT Spirit Realty Capital Inc., followed by a $19.2 million stake in office-focused Vornado Realty Trust.

Prologis still LaSalle's top holding

LaSalle held positions in 45 publicly traded REITs at quarter-end with a total market value of $2.53 billion.

Industrial REIT Prologis Inc. maintained its rank as LaSalle's biggest holding by market value since the prior quarter, despite having its stake cut 2.5%. As of June 30, the market value of LaSalle's holdings in Prologis was $193.1 million.

The firm's other top holdings included self-storage-focused Public Storage, valued at $146.3 million, and datacenter REIT Digital Realty Trust Inc., valued at $140.7 million.

Largest exposure in specialty sector

By property sector, the firm held the largest exposure in specialty REITs, aggregating to $604.6 million, up from $573.9 million in the previous quarter. It was followed by the residential REIT sector at $480.1 million and the retail segment at $393.2 million as of quarter-end.