In this paper we present the compelling reasons why investors’ portfolios would benefit from an allocation to REITs, and...
U.S. Real Estate Equity Securities
U.S. Real Estate Securities is a core, risk-managed strategy that strives to deliver strong, risk-adjusted performance. The strategy has a total return focus and aims to identify high-quality companies trading at attractive prices in the U.S. real estate market.
Why choose this investment strategy?
We’ve been managing real estate securities since 1998. Our U.S. Real Estate Securities strategy offers several benefits:
• An experienced, proven team: Our investment team averages more than 14 years of industry experience, using their specialized knowledge of regional real estate markets to capitalize on inefficiencies and generate alpha. This has helped us build a reputation for delivering consistent returns, over the long term, primarily through bottom-up security selection.
• Access to cross-asset insights of Principal Global Investors: We supplement our focused expertise and investment research with the broader real estate insights of Principal Real Estate Investors, as well as the global securities knowledge of Principal Global Equities. This helps us offer you a more comprehensive investment strategy.
• A consistent, differentiated process: Integrating both fundamental and quantitative research, our investment process uses these two independent yet complementary approaches to analyze and select securities, helping to give us a more accurate picture of a security’s performance potential.
Where U.S. Real Estate Securities invests
The strategy is available as a separate account or commingled investment. It invests in publicly listed securities that derive at least 50% of their assets, income, or revenues from one or more of the following:
• Institutional commercial real estate ownership
• Institutional real estate development
• Real estate-related services, such as leasing, management, and brokerage
• Mortgage origination, servicing, and investment
The securities we invest in may be structured as real estate investment trusts (REITs). We also regularly invest in non-REIT holdings such as real estate operating companies (REOCs) or other real estate-related entities. We selectively participate in both IPOs and secondary offerings, but we don’t participate in private placements.