Supportive Trends Accelerate REIT Rebound
The real estate market is gaining tailwinds for a sustained rebound as improving macro conditions and fundamentals create a good entry point for investors.
A prime location for Global Real Estate
After struggling amid interest rate uncertainty in a manner consistent with prior periods, REITs appear positioned for outperformance based on historical parallels evident in current conditions. Sentiment began to shift as central banks signalled an end to the interest rate tightening cycle, and upbeat attitudes should persist as rate stability reveals opportunities for active investors related to valuations, M&A activity, and categories marked by above-average demand such as data centres.
Recognised as one of the world’s largest real estate investment managers, PGIM Real Estate oversees $206 billion in global real estate assets. More than 1,200 employees operating in 35 cities worldwide 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.
The real estate market is gaining tailwinds for a sustained rebound as improving macro conditions and fundamentals create a good entry point for investors.
PGIM Real Estate explores how rate cuts create a tailwind for REITs in PGIM Investments' latest Manager Minutes video.
PGIM Real Estate shares insights on global real estate.
Sources of data (unless otherwise noted) are as of 31/12/2024.
¹PGIM Real Estate is the third largest real estate investment manager (out of 76 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 $133B 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.
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