Liquidity: By owning real estate securities you are provided the daily liquidity and transparency not found in the ownership of direct real estate assets. Buying and selling can happen in moments vs. days, weeks or even months, providing the flexibility to move in and out of property types and locations as market conditions change.
Current Income: REITs are required to pay out 90% of their net income to shareholders in the form of dividends. Historically, investors have used REITs as a vehicle for generating yield in their portfolios.
Diversification: The portfolio is global in nature, providing an indirect ownership interest in over 10,000 income-producing properties in the US and other developed countries around the world. Our holdings are diversified by both property type and geography, providing investors with a wide range of exposure to institutional quality real estate.
Potential Hedge Against Inflation: As a “hard asset” real estate has historically provided investors with a hedge against inflationary pressure. As interest rates and inflationary pressure increase, owners of commercial real estate have historically been able to raise rents to offset the negative impacts of inflation.
Low Correlation: The portfolio’s investments in REITs may combine equity-like return potential with regular income and offer low historic correlation to stocks and bonds.