Jefferies equity strategist Steven DeSanctis, for the first time in his career, brought the smid-cap real estate sector to Overweight from Underweight. Interest rates around the globe are "NOT going anywhere" and U.S. rates are tethered to the global markets and thus heading lower, DeSanctis tells investors in a research note. With rates staying lower for longer, the "quest for yield can be quenched by Real Estate," says the strategist. He believes the sector outperforms when the Federal Reserve cuts rates, holds up when volatility rises, and has little exposure to trade wars. DeSanctis points out that Jefferies analyst Jon Petersen prefers stocks in Industrials and Apartments, with favorite names Rexford Industrial (REXR), STAG Industrial (STAG), NexPoint Residential (NXRT), UDR, Inc. (UDR), Corporate Office Properties (OFC).

Reports Q1 revenue $214.1M, consensus $206.53M. "Rexford continues to deliver exceptional value and accretive cash flow growth generated by our entrepreneurial team and value-driven strategy," stated Co-CEOs Michael Frankel and Howard Schwimmer. "Looking forward, Rexford is well-positioned with extensive embedded and external growth opportunities, positioning the company to create significant value for our stakeholders for years to come."