Rexford's Laura Clark talks activist investor Elliott

"About a month in as CEO, Laura Clark, in a sit down with The Real Deal at Rexford Industrial's Brentwood office, appeared to confirm a theory that Elliott Investment Management was behind her entry to the corner office. She said the succession plan had already been in place but those discussions impact timing."

"When an activist investor takes a stake in a company, it typically means changes are coming and probably sends a chill down the spines of CEOs who, more than ever before, are the targets of activist campaigns. In the case of the vanilla industrial REIT, the campaign began with a rumor: there was talk that Paul Singer's Elliott Investment Management had quietly become one of Rexford Industrial's largest shareholders."

"The real news came late last year when Rexford announced a changed capital allocation strategy that involved selling real estate and buying back shares and a CEO shakeup. The REIT's co-CEOs were out and Clark was in. She won. Clark replaced Michael Frankel and Howard Schwimmer, who founded the multibillion-dollar REIT with former chair Richard Ziman."

"Now the activist investor's ownership shares are unclear, according to Clark. The hedge fund may not own shares at all anymore, she mentioned last week. Elliott called itself one of Rexford's largest investors in the dual November announcements. Elliott forms and establishes from time to time certain special purpose vehicles, operating companies, joint ventures or similar arrangements for investing in and developing opportunities, it says."

Rexford Industrial’s CEO Laura Clark confirmed that succession planning had been underway before her appointment, while activist-investor discussions affected timing. Activist ownership typically signals potential changes and can unsettle CEOs. The campaign began with rumors that Elliott Investment Management had become a major shareholder. Rexford later acknowledged conversations with Elliott during an earnings call. Late last year, Rexford announced a new capital allocation strategy involving selling properties and buying back shares, alongside a CEO transition. The co-CEOs were replaced by Clark, who began as CEO on April 1 after six years at the company. Former co-CEOs lost executive roles and board seats. Clark said Elliott’s current ownership shares are unclear and may no longer hold shares, while Elliott described itself as a large investor and noted it may invest through special purpose vehicles and related structures.

Read at therealdeal.com