Real estate has long been considered an alternative tangible asset. While real estate can be accessed through traditional means, such as direct ownership and real estate investment trusts (REITs), it is also possible to access this asset class through managers who invest opportunistically in private real estate and trade less mainstream real estate-related securities. Together, we select the real estate investments in line with your short- and long-term financial goals.
Real Estate Investment Trusts (REITs) are financial vehicles that pool investors’ capital to purchase or finance real estate. REITs may concentrate their investments in specific geographic areas or in specific properties types, i.e., hotels, shopping malls, residential complexes and office buildings. The value of the REITs and the ability of the REITs to distribute income may be adversely affected by several factors, including rising interest rates, changes in the national, state and local economic climate and real-estate conditions, perceptions of prospective tenants of the safety, convenience and attractiveness of the properties, the ability of the owner to provide adequate management, maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition from new properties, the impact of present or future environmental legislation and compliance with environmental laws, changes in real estate taxes and other operating expenses, adverse changes in governmental rule and fiscal policies, adverse changes in zoning laws, and other factors beyond the control of the issuers of the REITs.
REITs involve risks such as refinancing, economic conditions in the real estate industry, changes in property values and dependency on real estate management.