Investors are a fickle lot, often getting caught up in a good story and driving stock prices to unreasonable heights. That's pretty much what happened with Rexford Industrial (NYSE: REXR), which has now lost roughly a third of its value as investors have moved on to other investment ideas. The only thing is that this real estate investment trust (REIT) is still operating at a high level thanks to its unique industry positioning.

Rexford owns warehouses, which are vital cogs in the global economy. After all, the products made in one country have to be put someplace in the destination market as they move through the supply chain before they get sold. Rexford is there to help with the roughly 44 million square feet of space in its portfolio. What's unique here is that 100% of the company's portfolio is in the infill Southern California market. That's vastly different from peers like industry giant Prologis (NYSE: PLD), which has a globally diversified portfolio. Even most domestically focused competitors take a broader approach, with assets in multiple U.S. markets.

Image source: Getty Images.

Continue reading

Source Fool.com