International Real Estate Securities
This strategy provides access to Asian Pacific, European and Canadian commercial properties through a diverse portfolio of REITs and other real estate securities that we believe offer superior growth potential and attractive valuations.
WHY COHEN & STEERS
One of the largest, most experienced REIT specialist teams delivers extensive analysis
Direct access to management teams and industry participants is leveraged into value-added investment decisions
One of the first asset managers dedicated to REITs
Strong historical returns
Since the start of the modern REIT era in 1991, listed real estate has delivered strong absolute and relative returns compared to stocks and bonds
Attractive income and growth potential
REITs tend to pay attractive dividends, with yields currently well above those of stocks and bonds
Access to a diverse and growing global market
REITs tend to pay attractive dividends, offering an alternative source of income
Cohen & Steers International Real Estate Securities invests in a portfolio of REITs and other real estate securities across Asia Pacific, Europe and Canada, with opportunistic allocations to emerging markets, that we believe offer superior growth potential and attractive valuations. This strategy offers an effective way to capitalize on the growing securitization of real estate and the historically beneficial investment characteristics of large-scale income-producing properties.
We believe the international markets offer the potential for superior returns based on variations in regional economic and property sector cycles, the diversity of business models, the lack of uniform reporting and disclosure standards and the growing quality of real estate and securitization in many countries. We believe that alpha generation opportunities exist for well-resourced, disciplined and active managers.
With 22 professionals on the global real estate investment team, Cohen & Steers employs one of the largest and most experienced groups dedicated to global real estate securities, providing competitive market coverage and access to information on listed property investments. We have portfolio managers, research analysts and traders located in key markets, including New York, London and Hong Kong. Our 8 portfolio managers have an average of 22 years of investment experience and have been with the firm for an average of 13 years.
Strong foundations: The case for real estate securities
Listed real estate offers access to high-quality assets with strong growth potential, providing an efficient, liquid vehicle for investors seeking the unique benefits of the asset class.
August 2022 | 37 mins
WHY INVEST WITH US
Delivering value to our clients
Cohen & Steers has been at the forefront of real estate investing for more than 35 years. As one of the first asset managers dedicated to REITs, with a long-standing commitment to the asset class, our top priority is to deliver strong investment performance through our industry-leading real estate securities platform. Our dedication and drive for excellence have allowed us to build a foundation designed to provide sustainable outperformance relative to our peers.
An experienced team
+6 analysts and associates
PORTFOLIO SPECIALIST GROUP
Supporting our investment team and clients
We believe that publicly traded real estate securities are an attractive way to allocate to real estate. The philosophy that guides our real estate strategies is based on the following principles:
Market inefficiencies may create opportunities
Equity markets tend to be inherently inefficient at pricing real estate fundamentals. Active managers can capitalize on inefficiencies through stock selection by identifying material dislocations between share prices and fundamentals.
Research can deliver a sustainable advantage
As listed real estate specialists, we tend to be more attuned to changes in property fundamentals, often allowing us to trade on information earlier and faster than generalist managers.
Attracting and developing a deep bench of talent is critical to long-term success.
A team approach that emphasizes stability, collaboration and continuous improvement fosters a culture of investment excellence, providing the experience and perspective to successfully navigate real estate and stock market cycles.
Local decision-making within a global process
The drivers of real estate fundamentals are inherently local, so there is a benefit to locating analysts on the ground in the regions they cover.
Integrated risk management is paramount
Delivery of superior risk-adjusted returns demands an embedded, comprehensive and multidimensional approach to risk management.
Environmental, social and governance (ESG) analysis is explicitly integrated into our securities analysis and portfolio construction process
We think the deep understanding of ESG risks and policies are critical to unlocking value and mitigating risk.
Our investment process
Our strategy employs a relative-value investment process to identify securities that we believe are mispriced relative to underlying assets (e.g., net asset value, or NAV) and going concerns (e.g., dividend discount model, or DDM) and is designed to generate meaningful and consistent alpha.
Our macro research process is based on the following critical factors: the economy, real estate fundamentals, capital markets and the regulatory and political environment.
Portfolio managers generate a standard overlay of economic assumptions that creates a framework around which our analysts can build models to estimate key financial metrics.
The analysts use fundamental qualitative and quantitative research to generate forward-looking NAVs and DDM estimates for the securities under coverage. The team integrates ESG factors into the research and valuations as an integral aspect of the investment process.
Our proprietary valuation model guides portfolio construction. Judgments with respect to risk management, liquidity and other factors overlay the model’s output and drive investment decisions.
Market developments at Credit Suisse
The government-backed deal for UBS to acquire Credit Suisse will trigger a complete write-down of the nominal value of all Credit Suisse additional tier 1 bonds. We believe Credit Suisse is most likely to be an isolated incident, while we have been reducing our portfolios’ exposure to Credit Suisse significantly over the past several months.
Addressing developments at regional banks
The U.S. government's actions to minimize risk across the banking industry following the events of Silicon Valley Bank and Signature Bank have strong potential to prevent further bank runs and subsequent bank failures. But scrutiny of some regional banks will persist.
Citywire Selector: Fed insider-turned-bond boss backs central banks to beat inflationMarch 2023 | 1 min
Head of Fixed Income and Preferred Securities Bill Scapell spoke with Citywire Selector about Cohen & Steers’ preferred securities strategy and his fixed income outlook as central banks battle inflation.
The preferred securities asset allocation advantage
Preferreds offer long-term return potential superior to investment-grade and comparable to high-yield bonds, with diversification and quality advantages.
Institutional Investor: Competition Is Fierce for Private Infrastructure Deals. Here’s An AlternativeFebruary 2023 | 1 min
Portfolio Manager Tyler Rosenlicht spoke with Institutional Investor for a feature story on our recent infrastructure thought leadership and why listed infrastructure can be an attractive alternative or complement to private infrastructure in a portfolio.
Five reasons to consider preferred securities if you own municipal bonds
With many investors feeling the sting of taxes, municipal bonds aren’t the only option for tax-advantaged income. Preferred securities currently offer among the highest after-tax yields in fixed income, regardless of tax bracket.
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We’d be happy to answer questions about our investment solutions or any corporate-related inquiries.
We consider the information in this communication to be accurate, but we do not represent that it is complete or should be relied upon as the sole source of suitability for investment. Investors should consult their own investment professional with respect to their individual circumstances.
Past performance does not predict future returns. Risks involved with investment, including potential loss of capital, are substantial and should be carefully considered. The views and opinions are as of the date of publication and are subject to change without notice. There is no guarantee that any historical trend illustrated above will be repeated in the future, and there is no way to predict precisely when such a trend will begin. There is no guarantee that a market forecast made above will be realized. Active management is not guaranteed to outperform the broader market index.
Important Risk Considerations: Investing involves risk, including entire loss of capital invested. There can be no assurance that the investment strategy will meet its investment objectives. Diversification is not guaranteed to ensure a profit or protect against loss. Risks of investing in real estate securities are similar to those associated with direct investments in real estate, including falling property values due to increasing vacancies or declining rents resulting from economic, legal, political or technological developments, lack of liquidity, limited diversification and sensitivity to certain economic factors such as interest rate changes and market recessions. Foreign securities involve special risks, including currency fluctuations, lower liquidity, political and economic uncertainties, and differences in accounting standards. Some international securities may represent small- and medium-sized companies, which may be more susceptible to price volatility and less liquidity than larger companies.