Land & Buildings adds Rexford Industrial Realty to its portfolio in Q1

Land & Buildings Investment Management LLC added five new positions to its investment portfolio in the first quarter and increased its share count in eight of its existing positions, according to the activist investor's recent investor filing.

New portfolio additions

Industrial real estate investment trust Rexford Industrial Realty Inc. marked the largest new initiation by market value, at $25.7 million at quarter-end, the firm's 10th largest holding by market value.

Land & Buildings also bought into office REIT Alexandria Real Estate Equities Inc. and hotel REIT Ryman Hospitality Properties Inc. during the quarter, with stakes valued at $22.7 million and $20.3 million, respectively.

Rounding out the new positions was a $4.8 million stake in flexible office space provider WeWork Inc. and $4.6 million in Vanguard Long-Term Treasury ETF.

Position increases

In addition to the new initiations, Land & Buildings ramped up its existing share count in manufactured home REIT Sun Communities Inc. by 79.1%, a stake valued at $25.0 million on March 31.

The firm also upped its stakes in communications REIT SBA Communications Corp. and healthcare REIT Ventas Inc. by 49.5% and 34.6%, respectively.

Land & Buildings recently pushed for change in Ventas' board, claiming underperformance relative to its peers. The firm backed its own Jonathan Litt as a candidate for the board but later withdrew his nomination.

The investor increased its stake in student housing REIT American Campus Communities Inc. by 24.2% during the quarter, marking its largest position by market value at $105.9 million March 31. After quarter-end, American Campus Communities agreed to be acquired by affiliates of Blackstone Inc. for $65.47 per share in cash.

Position decreases

Land & Buildings exited its stakes in three companies during the quarter: Americold Realty Trust, VICI Properties Inc. and Caesars Entertainment Inc.

The firm likewise sold off half of its share count in shopping center REIT Retail Opportunity Investments Corp., as well as 43.3% of its stake in real estate services-oriented Jones Lang LaSalle Inc.

The firm trimmed its stake in industrial REIT LXP Industrial Trust, its second-largest holding at quarter-end valued at $74.6 million. Land & Buildings made a nonbinding offer in late January to acquire the REIT for $16 per share in cash. LXP announced shortly thereafter that its board was exploring strategic alternatives but later determined its best path at the time was for the REIT to continue to operate as an independent company.

Holdings by sector

By property sector, Land & Buildings held the largest exposure to residential REITs at quarter-end, at $258.3 million in aggregate.

Its holdings in industrial REITs totaled $100.2 million, while its healthcare REIT positions combined to $54.1 million.