Reopening, Reflation, and Recalibration: 3Rs Driving Opportunity in Global Real Estate
The COVID-19 pandemic severely challenged the global real estate industry over the past year.
In the onset of the Covid-19 pandemic, the global real estate industry experienced a precipitous fall in prices. While it appears the industry has broadly recovered, there is great dispersion in returns across real estate sectors.
The Global Real Estate Securities Team at PGIM Real Estate recognized this dispersion as an opportunity to outperform and is focused on three secular trends it believe will continue to drive returns in the months and years to come—re-opening, reflation, and re-calibration.
Read the Barron’s profile to learn more about how Rick Romano and his team are turning these three trends into performance.
PGIM Real Estate discusses wide range of opportunities for real estate investors from improving sentiment and rebounding demand.
In their annual Global Outlook, PGIM Real Estate illustrates why they are optimistic about the opportunities in real estate investments.
Investing in real estate poses certain risks related to overall and specific economic conditions, as well as risks related to individual property, credit, and interest rate fluctuations. The Fund may have additional risks due to its narrow focus; is nondiversified, so a loss resulting from a particular security or sector will have a greater impact on the Fund’s return; and invests in foreign securities, which are subject to currency fluctuation and political uncertainty. These risks may result in greater share price volatility. Real estate investment trusts (REITs) may not be appropriate for all investors. There is no guarantee a REIT will pay distributions given the inherent risks associated with the market. A REIT may fail to qualify as a REIT as defined in the Tax Code, which could affect operations and negatively impact the ability to make distributions. The Fund’s distributions will be primarily from REITs and from net realized gains, if any, from the sale of REITs. REIT distributions may be from income, from realized gain, and from return of capital. The Fund will provide to shareholders early in each calendar year the final tax character of the Fund’s distributions for the previous year. Also, at such time that a Fund distribution is expected to be from sources other than current or accumulated net income, a notice to shareholders may be required. There is no guarantee a REIT’s investment objectives will be achieved.
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