For nearly 25 years, the Real Estate Value Fund’s versatile approach “has always been distinct, but rarely as strategic” and “has vaulted the fund to the top of Morningstar’s Global Real Estate category” as noted in this Citywire feature by John Coumarianos.
Key takeaways include:
- The Real Estate Value Fund’s flexible approach has allowed them to own non-REITs and residential-related stocks, while sidestepping the problems in office and retail REITs… “fundamentals for the US-residential markets have rarely been as compelling with record low levels of inventory and accelerating demand from the ‘millennial cohort.’
- The fund has been invested in some of the leading timber landowners for the better part of a decade…there are several emerging opportunities to monetize timber lands through alternative uses such as generating carbon credit revenues for deferred harvest, leasing land for carbon storage or renewable generation, and converting land for residential or commercial use given migration patterns.
- Real Estate Services firms have been an essential component of the commercial property markets for centuries, essentially acting as a toll booth on activity by advising property owners and occupiers on leasing, financing, and investment sales transactions.
- The fund has certain positions that may be considered to be more opportunistic in nature including the bonds of Five Point Holdings (the largest land developer in coastal California) and the preferred equity of Fannie Mae and Freddie Mac with other opportunities relating to commercial real estate on the radar.
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