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Missed Rents’ Impact on Real Estate 

Real Estate Investing , Fixed Income

Some commercial tenants have stopped paying rent amid COVID-19. Without rental income, property funds are not able to pay distributions to shareholders and borrowers cannot service their debt. We analyzed property-fund data to assess the impact on investors.

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Measuring Climate Risk in Real Estate Portfolios 

ESG Research , Real Estate Investing

By evaluating real estate portfolios in terms of different physical risks as well as under different transition-risk scenarios, investors may be able to build a more complete picture of their exposure.

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Real Estate Asset Selection Mattered — Especially in a Crisis 

Real Estate Investing

As real estate strategies become more complex and market disruption continues, attribution analysis may prove a valuable tool. We looked at asset selection’s role in driving portfolios’ relative returns during relatively calm and disruptive periods.

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How COVID-19 could impact private real estate values 

Real Estate Investing

Real estate has not historically been immune to growth shocks, but the impact of COVID-19 has been harder to establish than it has for public equities. Discounted-cash-flow scenarios may help investors understand the potential sensitivity of their portfolios.

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What out-of-cycle write-downs may mean for real estate yields 

Real Estate Investing

As real estate investors seek to understand how the COVID-19 crisis could affect their portfolios, several large Australian pension funds recently wrote down their property portfolios by up to 10%. What could a 10% write-down imply for yields?

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What’s driven capital growth in real estate portfolios? 

Real Estate Investing

In real estate investing, capital growth has historically been responsible for most of the observed volatility in total returns. Could breaking capital growth into its components help tell a more detailed story of property portfolios’ performance?

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Exploring the ‘what ifs?’ in real estate 

Real Estate Investing

The opacity of real estate markets and the wide spectrum of potential outcomes makes it hard to understand performance. Running a historical “what if” analysis may help institutional investors understand how different choices could have impacted outcomes.

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What’s the downside in real estate? 

Real Estate Investing , Global Investing

Real estate has always been marked by periods of expansion and sometimes painful corrections. But all cycles are not alike.

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Real estate may be yielding less than you thought 

Global Investing , Real Estate Investing

Income has long been an important part of real estate returns meaning yields are often heavily scrutinized by investors. However, headline yields do not factor in capital expenditure requirements which can vary significantly. Investors looking to better understand potential “free cash flow” positions of portfolios post-capex may want to adjust the yields they use to account for it.

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The changing face of real estate portfolios 

Global Investing , Real Estate Investing

Office and retail investments’ historic dominance of commercial real estate portfolios is decreasing, with other property types — including logistics centers, student housing, and data centers — increasing. This evolution highlights how technology and the search for yield have led investors to diversify and seek exposure to other property types.