Cohen & Steers adds timber-focused Rayonier to US REIT portfolio

Investment manager Cohen & Steers Inc. increased its share count in 22 of its US real estate investment trust positions during the fourth quarter of 2023 while selling out of seven of those holdings, according to the firm's most recent investor filing.

The total value of Cohen & Steers' US REIT portfolio grew 15.1% in the fourth quarter to $44.29 billion as of year-end, as share prices across the sector increased in the quarter.

Initiations and increases

Cohen & Steers added three new positions to its US REIT portfolio in the recent quarter.

The largest new REIT position was timber-focused Rayonier Inc., a stake valued at $51.3 million as of Dec. 31.

Cohen & Steers also purchased 21,689 shares of industrial REIT Rexford Industrial Realty Inc. during the quarter, a stake valued at $1.2 million at year-end, as well as a single share in office REIT Net Lease Office Properties.

In addition to the new positions, the investment firm increased its share count in 22 of its existing REIT holdings.

By relative percentage, Cohen & Steers' largest increase was in healthcare REIT Ventas Inc., increasing its share count to 51,228 from just 206 shares the quarter prior, valued at $2.6 million as of Dec. 31.

It also increased share count in industrial REIT STAG Industrial Inc. by more than tenfold, a stake valued at $44 million at year-end.

The firm tripled its share count in Iron Mountain Inc., boosting the data storage-focused REIT to Cohen & Steers' 11th largest US REIT holding by market value at $1.57 billion.

Stakes were doubled in two multifamily REITs, Equity Residential and AvalonBay Communities Inc., as well as casino REIT VICI Properties Inc.

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Exits and decreases

The investment manager pared back share count in 23 of its US REIT positions, while completely exiting its stake in seven.

Some notable decreases were with shopping center REIT Kite Realty Group Trust, in which the firm sold off 59.1% of its stake. Share count was also cut in multifamily REIT Mid-America Apartment Communities Inc. by 53.4%, retaining a stake valued at $674.5 million at year-end.

The firm decreased its share count in healthcare REIT Medical Properties Trust Inc. by 45.1%, as well as multifamily REIT Camden Property Trust and communications REIT SBA Communications Corp. by 37.1% and 30.1%, respectively.

The largest among the seven exits during the quarter was from industrial REIT First Industrial Realty Trust Inc., valued at $82.9 million the quarter prior.

The firm also sold its approximately $15.2 million stake in EPR Properties during the quarter, as well as its approximately $3.4 million stake in Omega Healthcare Investors Inc.

Largest holdings

Prologis Inc. was again the firm's largest US REIT holding by market value at $4.08 billion as of Dec. 31. Cohen & Steers sold 8.3% of its stake in the industrial REIT during the quarter.

Healthcare REIT Welltower Inc. and communications REIT American Tower Corp. ranked second and third, valued at $3.68 billion and $3.55 billion, respectively.

Regional mall REIT Simon Property Group Inc. rose one spot to Cohen & Steers' fourth-largest REIT position, valued at $3.28 billion at year-end. While Cohen & Steers reduced its share count in Simon Property by 2% during the quarter, its share price was up 32.0% quarter over quarter, the largest share-price increase among all the firm's REIT holdings.

By property sector, Cohen & Steers held the highest exposure to specialty REITs as of year-end, at $13.93 billion. Within the specialty sector, the firm's holdings in communications REITs totaled $5.89 billion, followed by its datacenter REIT holdings at $5.11 billion.

The residential REIT sector followed with an aggregate market value of $8.47 billion, followed by the retail sector at $7.85 billion.