RECOGNISING THE REIT OPPORTUNITY

A long-awaited turning point could foster renewed promise in REIT markets.

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INGREDIENTS OF A REIT REBOUND FUND IN THE SPOTLIGHT EXPERTISE IN ACTION ADDED INSIGHTS
INGREDIENTS OF A REIT REBOUND FUND IN THE SPOTLIGHT EXPERTISE IN ACTION ADDED INSIGHTS

UPSIDE ON THE ROAD TO REIT RECOVERY

REIT valuations imply upside at a time when REIT returns versus equities have been historically substandard for a prolonged period. Amid signs of improving sentiment, potential for REITs to revert to long-term performance patterns is bolstered by solid fundamentals and the most stable rate environment in years. Secular trends, including aging demographics, AI-driven demand and limited construction in key categories, underpin the opportunity.

KEY THEMES IN GLOBAL REITS

Under current conditions, PGIM Real Estate is emphasising categories benefiting from defensive demand trends, including assisted living, data management and self-storage across 2025 and beyond.

TURNING TODAY’S REAL ESTATE PROMISE INTO TOMORROW’S RESULTS​

Real estate investment trusts, or REITs, offer stable income, equity-like growth potential, and diversification from stocks and bonds. The PGIM Global Select Real Estate Securities Fund targets REIT opportunities that stand out in terms of relative fundamental promise. The resulting portfolio is a concentrated collection of high-conviction ideas culled from a global opportunity set by an investment team noted for its experience, performance history and resources.

FEATURED REITS FUND

AS OF 30/06/2025
Fund Morningstar Overall Rating™ Morningstar Rankings
1-Yr
3-Yr
5-Yr
10-Yr
PGIM Global Select Real Estate Securities Fund
IE00BYM2RB15
USD I Acc
Property - Indirect Global out of 583 funds
30%
161/682
8%
41/583
8%
24/484
8%
31/268

Source: Morningstar. Morningstar measures risk adjusted returns. The Overall Rating is a weighted average based on a fund's 3-, 5-, 10-year, if applicable. Please see applicable fund page for a full list of star ratings. Morningstar category rankings are based on total return, do not include the effect of sales charges, and are calculated against all funds in each fund’s respective Morningstar category.

A Partner with Expansive Scale, Resources and REITs Expertise

Overseeing $210 billion in global assets, PGIM Real Estate is one of the world’s largest real estate investment managers. More than 1,200 employees operating in 30+ cities offer global scale and deep expertise supported by resources dedicated to both public and private real estate in a way that provides comprehensive research capabilities and unique access to opportunity.

Sources of data (unless otherwise noted) are as of 31/03/2025.​

1PGIM Real Estate is the third largest real estate investment manager (out of 72 firms surveyed) in terms of global real estate assets under management based on Pensions & Investments’ Top Real Estate Managers list published October 2024. This ranking represents global real estate assets under management by PGIM Real Estate as of 30/06/2024. Participation in the ranking is voluntary and no compensation is required to participate in the ranking. ​

2AUM total is reflected as gross and includes assets under administration. Net AUM is $136B and AUA is $47B.

3PGIM Real Estate is committed to the Urban Land Institute’s (ULI) Greenprint Center for Building Performance Net Zero Carbon Goal to become Net Zero by 2050 for our global portfolio of managed properties.​

4Does not include properties where we service a loan only.

References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities. The securities referenced may or may not be held in the portfolio at the time of publication and, if such securities are held, no representation is being made that such securities will continue to be held.

 

The views expressed herein are those of PGIM investment professionals at the time the comments were made, may not be reflective of their current opinions, and are subject to change without notice. Neither the information contained herein nor any opinion expressed shall be construed to constitute investment advice or an offer to sell or a solicitation to buy any securities mentioned herein. Neither PFI, its affiliates, nor their licensed sales professionals render tax or legal advice. Clients should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation. Certain information in this commentary has been obtained from sources believed to be reliable as of the date presented; however, we cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is current as of the date of issuance (or such earlier date as referenced herein) and is subject to change without notice. The manager has no obligation to update any or all such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy.

 

Any projections or forecasts presented herein are subject to change without notice. Actual data will vary and may not be reflected here. Projections and forecasts are subject to high levels of uncertainty. Accordingly, any projections or forecasts should be viewed as merely representative of a broad range of possible outcomes. Projections or forecasts are estimated based on assumptions, subject to significant revision, and may change materially as economic and market conditions change.

Morningstar Ratings

The Morningstar Rating for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustments for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year(if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

 

©2025 Morningstar, Inc. All rights reserved. The information contained herein (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.  

 

Past performance is not a guarantee or a reliable indicator of future results.


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