Prologis (NYSE: PLD) and Rexford Industrial Realty (NYSE: REXR) both reported very strong second-quarter financial results. However, there's an important difference between the two real estate investment trusts (REITs): One is highly diversified geographically, and the other is tightly focused on just one region. There could be some short-term implications from that this year given that union members at 29 West Coast ports have been trying to iron out a new contract for over a year.

One of the hallmarks of Prologis' business model is that it owns warehouses in key transportation hubs throughout the world. The basic goal is to be wherever customers might need it to be to facilitate their global trade needs.

At the other end of the spectrum is Rexford, which has chosen to focus on a single, well-situated market, Southern California. The region where it operates has limited warehouse supply and high demand, making it attractive for the landlord.

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Source Fool.com