Rexford Industrial Realty Inc. said Tuesday afternoon that co-CEOs Michael Frankel and Howard Schwimmer will depart from their roles effective March 31, 2026 and will be succeeded by current COO Laura Clark effective April 1. The Los Angeles-based REIT is also implementing a new capital allocation strategy. Bloomberg News reported that both actions came about after activist investor Elliott Investment Management built an active stake in the company.

Clark joined Rexford as CFO in 2020 and was appointed COO in 2024. Frankel and Schwimmer will remain on the Rexford board until their terms expire next year.

Tyler Rose, chairman of the board of directors, said, “This transition is the culmination of the Board’s multi-year succession planning process that will ensure a seamless handoff of leadership responsibilities. The Board is confident that Laura is the right executive to lead the company through the execution of its go-forward strategy. She has demonstrated exceptional strategic vision and a passionate commitment to operational excellence, financial discipline and team building.”

Regarding its capital allocation strategy, Rexford plans to reduce exposure to ground-up development, implement a programmatic disposition program, benchmark future investment opportunities against risk-adjusted returns from share repurchases and drive significant G&A savings. The company will also add an independent board member by the end of 2025, following constructive engagement with Elliott.

“We commend Rexford Industrial for taking today’s decisive actions, including the announced CEO transition and other tangible steps to improve operational efficiency, refocus capital allocation and enhance governance and oversight,” said Marc Steinberg, partner at Elliott. “As one of the company’s largest investors, we believe these bold actions position Rexford Industrial well for this next stage in its evolution. We appreciate the collaborative discussions we’ve had with management and the board, and we believe the company is on a trajectory to deliver significant long-term value for shareholders.”