Head of Private Real Estate James Corl spoke with Institutional Investor for a feature story on our recent whitepaper and why an optimized real estate portfolio may require access to both listed and private markets.
The following article was published by Institutional Investor and is made available here with permission.
ABOUT THE AUTHORS
James Corl, Executive Vice President, is Head of the Private Real Estate Group.
FURTHER READING
The Real Estate Reel: What recent listed vs. private returns mean for allocations
Listed and private real estate tend to be correlated over the long term, but correlations turned negative recently, and we believe investors should embrace this relationship as a diversification tool.
Why invest in listed REITs today
REITs have outperformed stocks and bonds when yields and growth move lower. Demand is healthy while supply is constrained. And REIT valuations relative to the broader equity market are meaningfully below the historical median.
The Real Estate Reel: A closer look at Q1 REIT returns and what may be next
Listed REITs were down for the first quarter as markets adjusted to a rise in real rates, but we believe the outlook is positive in hard, soft and no-landing scenarios.
Please see important disclosures and risks below.
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Risks of Investing in Real Estate
Private real estate investments are illiquid and susceptible to economic slowdowns or recessions and industry cycles, which could lead to financial losses and a decrease in revenues, net income and assets. Lack of liquidity in the private real estate market makes valuing underlying assets difficult. Appraisal values may vary substantially from a price at which an investment in real estate may actually be sold.
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