AEW Capital trims REIT holdings in Q2

AEW Capital cut stakes in 31 US REITs in Q2 while boosting CubeSmart and adding Rexford to its $1.9B portfolio.

August 21, 2025

AEW Capital cut positions in 31 US REITs during Q2 2024, reducing its total REIT portfolio value by 7.1% to $1.9B.rn
The largest reduction was a 55.9% sell-off in W. P. Carey, while AEW fully exited industrial REIT Lineage.rn
In contrast, AEW dramatically increased its CubeSmart stake from 400 shares to more than 600,000, elevating the storage REIT to a mid-tier holding.rn
Residential REITs remain AEW’s largest sector allocation at $412.9M, followed by specialty and healthcare REITs.rnrnrn

Key Takeaways

Pulling Back

S&P Global reported that Boston-based AEW Capital Management LP pared back its US real estate investment trust portfolio during the second quarter of 2024, selling shares in 31 REITs. Combined with weaker market pricing, the moves brought AEW’s total REIT holdings down 7.1% to $1.90B as of June 30, according to its latest Form 13F filing.

The firm’s most significant cut came in W. P. Carey Inc., where AEW sold nearly 56% of its position, leaving just over 61,500 shares valued at $3.8M. AEW also halved its exposure to Tanger Inc., while trimming positions in Macerich Co., Mid-America Apartment Communities Inc., and Broadstone Net Lease Inc.

Notably, AEW fully exited Lineage Inc., an industrial REIT it had held a small position in as of Q1.

Adding Storage Muscle

While AEW was in trimming mode broadly, it initiated one new position — a $4.3M stake in Rexford Industrial Realty Inc.

The bigger story was AEW’s aggressive move into CubeSmart, a self-storage REIT. The firm boosted its stake from just 400 shares in Q1 to more than 600,000 shares by the end of Q2, valued at $28.0M. That increase vaulted CubeSmart from AEW’s smallest REIT position to its 19th largest holding.

AEW also raised its exposure by more than 20% in UDR Inc. (+80.6%), Equity LifeStyle Properties Inc. (+72.9%), and EastGroup Properties Inc. (+27.9%).

Portfolio Leaders

Despite the broad selloff, AEW Capital’s largest holding remained Welltower Inc. at $197.3M, followed by Prologis Inc. ($178.9M) and Equinix Inc. ($146.2M).

AEW Capital’s REIT holdings by market value as of June 30, 2025.

By property type, residential REITs represented AEW’s biggest bet at $412.9M (21.7% of the portfolio). Specialty REITs — including datacenter and casino landlords — totaled $390.8M, while healthcare REITs made up $286.7M.

Residential and specialty REITs make up the largest share of AEW Capital’s portfolio as of June 30, 2025.

Why It Matters

AEW’s repositioning underscores a selective approach to the REIT sector amid continued pricing pressures and sector rotation. While cutting exposure to diversified and retail landlords, the firm leaned into self-storage, industrial, and residential REITs, signaling conviction in property types with resilient demand.