Re-opening, Reflation and Re-calibration Continue to Provide Tailwinds
PGIM Real Estate shares its views on the current economic environment and outlook for global real estate securities.
Dispersion in return across property types offers an opportunity for active real estate managers to outperform. In this video, Rick Romano, Global Head of Real Estate Securities at PGIM Real Estate examines the opportunities in today’s market.
The views expressed in this video are of PGIM Real Estate as of October 13, 2021.
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.