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Real Estate Investment
Why Invest in Real Estate?
Private real estate is an important asset class of our real assets investment business because it can provide diversification, inflation protection, high returns, tax advantages, and predictable income streams even during economic downturns or high inflation periods, like currently. Unlike financial assets, such as stocks and bonds, real assets, such as real estate, infrastructure, and commodities, are tangible and can hold values during periods of inflation and war.
Global Real Estate Has Consistently Outperformed Global Equities
over the Past Two Decades
Traditionally, real estate has been regarded as interest-driven with limited growth potential and less liquid when compared to stocks and bonds. However, in reality, global real estate has outperformed traditional stocks and bonds in full-market cycles while delivering higher income in the past twenty years.
Source: Bloomberg LLP, May 31, 2023. Note: Real Estate Total Returns represented by the RUGL Index. Infrastructure Total Returns represented by the SPGTINTR Index. Global Equity Total Returns represented by the MXWO Index.
Real Estate Investment Providing Protection against Inflation, Currency Movements, and Other Macroeconomic Factors
Real estate investment can deliver higher risk-adjusted returns than traditional stocks and bonds and built-in inflation protection, providing an excellent buffer against effects of inflation, currency movements, and other macroeconomic factors.
Source: Green Street Advisors, Bureau of Labor Statistics as of December 31, 2022. Net operating income (NOI) growth is the average NOI growth by year across the major property sectors in North America: apartment, industrial, mall, office, and strip retail. NOI growth equals all revenue from a property minus all reasonably necessary operating expenses. NOI growth may not be correlated to or continue to keep pace with inflation. Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a representative basket of goods and services.
Our Areas of Focus in Real Estate Investment
We invest across diverse essential private real estate subsectors, including single-family, multifamily, student housing, affordable housing, retirement, quality living, premium residential, leisure, retail, mixed development, and industrial properties to minimize risks and maximize investment returns. However, we focus on multi-family residential development, particularly the affordable housing, retirement, and quality living subsectors, in response to the high demand for homes in these areas.
REAL ESTATE INVESTMENT
Strategies and Capabilities
We bring value to investors by identifying unique real estate investment opportunities that deliver attractive risk-adjusted returns and provide a diverse portfolio exposure. As part of our investment strategies, we continue analyzing data and identifying new markets globally, navigating through market cycles and expanding into new markets to benefit investors.