U.S. Realty Focus
This strategy invests in a concentrated portfolio of U.S. REITs and other real estate securities that we believe have significant upside, with the objective of delivering superior returns for investors with higher risk tolerance.
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
WHY 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, offering an alternative source of income
Access to a diverse and growing market
The listed REIT market has evolved substantially over the past decades, providing access to new property types and new markets
Cohen & Steers U.S. Realty Focus invests in a concentrated portfolio of U.S. REITs and other publicly traded real estate securities that we believe are significantly undervalued, with the objective of delivering superior returns for investors with higher risk tolerance. Our 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. With it, we seek to maximize total return with a balance of capital appreciation and current income.
With 22 professionals on its 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.
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 the first investment advisor to focus on real estate securities, 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.
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PORTFOLIO MANAGEMENT
An experienced team
+7 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.
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.
APPROACH
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.
Macro research
Our macro research process is based on the following critical factors: the economy, real estate fundamentals, capital markets and the regulatory and political environment.
Model overlay
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.
Fundamental research
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.
Portfolio construction
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.
The Real Estate Reel: Private real estate turns positive for first time in two years
The increase in total returns for private real estate was modest, but we think it is notable for several reasons.
What could a second Trump presidency mean for real assets?
Market reaction indicates investors are expecting higher inflation, deregulation, lower taxes and winners and losers in key sectors such as energy and infrastructure.
The Real Estate Reel: A closer look at Q3’s historically strong listed REIT returns
Listed REITs returned nearly 17% in the third quarter, handily outperforming equities, as lower real rates took hold in markets.
3 Reasons to own Listed REITs today
We see compelling evidence to own listed real estate in the current environment.
The Real Estate Reel: Where are we in the private real estate cycle?
Rising listed REIT valuations, troughing private commercial real estate prices, and rising CRE debt distress are sending a signal that there may be a light at the end of the tunnel for the broader CRE markets.
A new market regime for REITs
A regime shift to lower rates is a favorable backdrop for REITs, in our view.
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Need to contact us?
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. 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. Concentrated strategies may present a higher degree of risk.