U.S. Realty Total Return
The strategy seeks to maximize total return, with a balance of capital appreciation and current income, by investing in a diversified 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, offering an alternative source of income
Access to a diverse and growing market
Alternative property types make up more than half the U.S. REIT market, making it less cyclical and driven by secular trends
With the Cohen & Steers U.S. Realty Total Return Strategy, we seek to maximize total return, with a balance of capital appreciation and current income, by investing in REITs and other real estate securities with superior growth prospects and attractive valuations. 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 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.
FEATURED INSIGHT
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 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
+8 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 are highly 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 multi-dimensional 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.
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.
Closed-end fund commentary 1Q 2024
April 2024 | 3 minsClosed-end funds moved broadly higher during the first quarter.
Preferred securities call alert – $13 billion reinvestment opportunity
April 2024 | 2 minsInvestors are facing new challenges as many of their single-issued preferred securities may be subject to call—including some that are trading above par and could lose value. Now may be the time to look beyond single issues to the added value of an actively managed portfolio.
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.
3 Reasons to own global listed infrastructure today
Attractive valuations, an advantageous macro environment and high private investor interest set the stage for potentially strong total returns from listed infrastructure.
3 Reasons to own listed REITs today
We see compelling evidence to own listed real estate in the current environment.
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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. 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.