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Real Estate and Other Real Assets Update - June 2020

Top Whitepapers on the Outlook for Real Assets

The global real estate industry has been significantly impacted by COVID-19. Its effects have not only been felt in the retail sector (due to less foot traffic and lower consumer confidence) but also in traditionally stable sectors such as corporate offices (due to increased personnel working from home).

The papers below focus upon the outlook for real estate and other real assets, with the exclusion of agriculture and farmland, which we have covered recently. Included, however, are several papers on unique real asset topics, such as green buildings, social infrastructure, and real estate debt. 

real estate real assets

Think Global: Identifying tomorrow's world cities (Nuveen, 2020)

This paper by Nuveen questions the viability of a cities-based real estate strategy in these challenging times due to the coronavirus pandemic. It explores the effects of urbanisation, shifts in demographics, sustainability, and more.

Back to Work: Office demand in a post-pandemic world (MetLife IM blog, May 2020)

While MetLife IM believe there may be a permanent shift to remote working arrangements, determining the impact to office demand requires a more nuanced approach.

Green, Healthy Buildings as Economic Stimulus (DWS Group, May 2020)

DWS welcome the EU’s intention to ‘Rebuild Europe’ by accelerating green building renovation. This paper outlines how the policy is expected to support economic recovery, our health, reduce carbon emissions and improve energy security.

Annual Impact Report: Social infrastructure (Franklin Templeton, May 2020)

For compliance reasons, this paper is only accessible in the EMEA region

Physical assets such as buildings with a civic and social purpose are defined by Franklin Real Asset Advisors as social infrastructure. In this paper, they outline examples such as hospitals, schools, affordable housing, etc.

Real Estate Outlook: Global overview (UBS AM, May 2020)

In their global outlook, UBS expect recession to hit occupier demand with retail worst affected and logistics most resilient. The rate of recovery will relate to the speed at which the health crisis is controlled and a vaccine is found.

Global Outlook: Real estate in a crisis (PGIM Real Estate, May 2020)

While uncertainty and disruption are set to impact real estate values in the near term, PGIM believe that there is still a significant volume of capital looking to access real estate product on a long-term basis.

Coronavirus: Latest outlook for real estate investors (Nuveen, May 2020)

Nuveen Real Estate research team take a look at real estate investing in a post coronavirus world. They asses global, regional and sector perspectives looking at sensitivities and periodic comparisons.

Private Equity is From Mars, Hedge Funds are From Venus (Invesco, May 2020)

For compliance reasons, this paper is only accessible in certain geographies

Invesco takes a deeper look at the role alternatives play in asset allocation and examine how they have coped in 2020. They look at real estate, commodities, private equity, hedge funds, diamonds and fine wines among others.

Mastering the Real Estate Cycle (Aviva Investors, 2020)

For compliance reasons, this paper is only accessible in certain geographies

The cyclical nature of real estate can provide investors with unique opportunities. Aviva's new tool aids investors in evaluating risks that are specific to the position of the current market cycle.

Going Green: Real estate and sustainability in APAC (UBS AM, 2020)

Global warming may eventually have a major impact on food production, global supply chains, and human lives. UBS Asset Management explains why it may not be 'business as usual' anymore for the real estate industry.

REITs: A holistic real estate allocation (Janus Henderson, Apr 2020)

For compliance reasons, this paper is only accessible in the United States and Canada

This paper by Janus Henderson encourages institutional investors to reassess REITs as a strategic return-enhancing asset class. It outlines how REITs can act as a complement to private real estate and offer broader exposure.

What's in Your Real Assets Portfolio? Introducing RASA (PGIM IAS, May 2020)

In analysing real asset portfolios, PGIM note that similar asset class allocations may have different macroeconomic and market sensitivities. Here they introduce their RASA framework for identifying funds and constructing portfolios.

Pay Trends in Alternative Investments 2020 (Emolument)

Emolument lists the results from their survey in salary expectations and pay trends for alternative investments such as venture capital, real estate, private equity, infrastructure and mezzanine debt roles in sterling terms.

Global Social Infrastructure Finance for Institutional Investors (Pensions Institute, 2020)

Private sector investment in social infrastructure has significantly fallen over the last decade. This paper by the Pensions Institute outlines why sustainability, impact and SDG investing open a new door for asset owners.

Why Insurers Are Increasingly Considering Infrastructure Investments as Core (S&P Dow Jones Indices, May 2020

In this series, S&P interview insurance industry thinkers who share their thoughts and perspectives on a variety of market trends and themes impacting indexing.

Emerging Trends in Infrastructure (KPMG, 2020)

KPMG highlight some of the emerging trends in the infrastructure industry in this paper. These include sustainability, socio-political change, and other risks.

A Comparative History of Oil and Gas Prices (OIES, 2020)

The paths of evolution for oil and gas will depend on what happens in the competing markets for energy sources. OIES detail how their history is rich with dominant companies, government intervention and cycles of boom and bust.

Commercial Mortgage Loans: An alternative asset in LDI portfolios? (PGIM Real Estate, May 2020)

Sponsors today are challenged with low interest rates and the potential for negative credit migration. In this paper, PGIM look at core commercial mortgage loans as an alternative addition to the traditional LDI portfolio.

Are Secure Income Assets Being Overlooked? (LGIM, May 2020)

For compliance reasons, this paper is NOT accessible in the United States and Canada

LGIM explains that private credit (including real estate debt and infrastructure debt) may yield opportunities for positive societal outcomes as well as positive returns for investors.

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