Rexford Industrial outlines strategic changes after Elliott engagement

Rexford Industrial Realty Inc. (NYSE: REXR) announced strategic and financial priorities following engagement with Elliott Investment Management, including a reformed capital allocation framework and operational changes designed to enhance shareholder value.

The company outlined plans to implement a programmatic disposition strategy, selling underperforming or fully-valued assets and reinvesting proceeds into opportunities with higher risk-adjusted returns. Future repositioning, development projects and acquisitions will be evaluated using revised underwriting criteria aligned with current cost of capital and market conditions.

Rexford Industrial expects to achieve $20 million to $25 million in net general and administrative savings in 2026 following a CEO leadership transition at the end of the first quarter. The company projects full-year 2026 G&A expenses of $57 million to $62 million, which would reduce G&A as a percentage of revenues below the Industrial REIT peer average of 6.2%.

The company announced plans to add a new independent director to its board by the end of 2025. Following upcoming retirements and the addition of incoming CEO Laura Clark to the board, Rexford Industrial's board will comprise seven directors after the 2026 annual meeting of shareholders.

In a separate announcement, the company said Laura Clark, currently chief operating officer, will become CEO effective April 1, 2026. Clark will succeed co-CEOs Howard Schwimmer and Michael Frankel, who will depart their executive roles on March 31, 2026, but continue as directors until the 2026 annual meeting.

"We commend Rexford Industrial for taking today's decisive actions," said Marc Steinberg, partner at Elliott. The investment firm described the measures as positioning the company for its next stage of evolution.

Rexford Industrial maintains a target leverage ratio of 4.0x to 4.5x on a net debt to EBITDA basis to preserve its investment-grade rating. The company's portfolio comprised 420 properties with approximately 50.9 million rentable square feet as of September 30, 2025.

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