Elisabeth Troni, fund manager with CBRE IM’s flagship global investment strategy, was a guest on the latest episode of Nareit’s REIT Report.
CBRE IM’s flagship global strategy began to allocate to listed REITs in December 2022. Troni explains the timing behind that decision and the scope it gave the strategy to access niche and specialized property sectors.
Since December 2022, the strategy has entirely invested in an actively managed but broadly diversified strategy, Troni said. She added that the addition of a completion strategy, which would unlock opportunities in those specialty sectors, is currently under review.
Troni noted that while the market is unsure about when rate cuts may occur, “what we do feel confident about is the fact that higher rates are priced into public markets in terms of the pricing levels, and they have a strong chance to outperform when the market can see the end of rising rates.”
Another positive factor for listed real estate is the expectation that supply will drop in 2025, according to Troni. “That's a real green shoot coming through in the sector, both private and public.”
Meanwhile, Troni discusses that while the markets are fixated on AI stocks and the tech sector, “there are certainly other valuable assets worthy of attention. We are backing the view that this is an attractive time to enter listed real estate…for a long-term investor looking to time their entry, to the extent that's possible, (it) looks very favorable.”