Benchmark Real Estate Strategies

Benchmark Real Estate Strategies2018-11-22T22:27:37-05:00

Not All Real Estate is Created Equal

Each property type has its own set of investment characteristics, including individual economic cycles and risk factors, competition threats, and growth potential. Real Estate SCTRs℠ provide tailored solutions for commercial real estate investment management. There is significant dispersion of market multiples (Share Prices/Fund From Operations) and returns throughout the property sectors. SCTRs℠ give market participants direct access to the property class they desire.

Benchmark Indexes can serve as the basis for exchange traded funds (ETFs) and institutional asset mandates. It is not possible to invest directly in an index.

The Benchmark Industrial Real Estate SCTR – INDS

The Benchmark Industrial Real Estate SCTR℠ Index measures the performance of publicly-traded real estate securities, including Real Estate Investment Trusts (REITs), of exchange listed companies in the U.S. that primarily own and manage industrial properties and facilities (including warehouse/industrial) and rent space in those properties to tenants. Learn more here.

The Benchmark Office Real Estate SCTR – DESK

The Office Real Estate SCTR℠ Index measures the performance of publicly-traded real estate securities, primarily Real Estate Investment Trusts (REITs), of exchange listed companies in the U.S. that own and manage various forms of office real estate and rent space in those properties to tenants. The office securities include real estate investment trusts that specialize in different properties and markets such as skyscrapers, office parks, government agencies, and central business districts. Learn more here.

The Benchmark Healthcare Real Estate SCTR – RXRE

The Benchmark Healthcare Real Estate SCTR℠ Index measures the performance of publicly-traded real estate securities, primarily Real Estate Investment Trusts (REITs), of exchange listed companies in the U.S., that primarily own and manage various forms of healthcare related real estate and rent space in those properties to tenants. The healthcare securities include real estate investment trusts that specialize in different properties and markets such as medical office buildings, hospitals, senior living facilities, and skilled nursing facilities. Learn more here.

The Benchmark Apartments & Residential Real Estate SCTR – PAD

The Benchmark Apartments & Residential Real Estate SCTR℠ Index measures the performance of publicly-traded real estate securities, primarily Real Estate Investment Trusts (REITs), of exchange listed companies in the U.S. that own and manage various forms of residences and rent space in those properties to tenants. The residential securities include real estate investment trusts that specialize in apartment buildings, student housing, manufactured homes and single-family homes.  Learn more here.

The Benchmark Hotel and Lodging Real Estate SCTR – HOTL

The Benchmark Hotel and Lodging Real Estate SCTR℠ Index measures the performance of publicly-traded real estate securities, including Real Estate Investment Trusts (REITs), of exchange listed companies in the U.S., that primarily own or manage various forms of hotel, motel, and lodging related real estate and rent space in those properties to tenants. Learn more here.

The Benchmark Retail Real Estate SCTR – RTL

The Benchmark Retail Real Estate SCTR℠ Index measures the performance of publicly-traded real estate securities, including Real Estate Investment Trusts (REITs), of exchange listed companies in the U.S. that primarily own and manage retail real estate and rent space in those properties to tenants. Retail equity securities include REITs that focus on large regional malls, outlet centers, grocery-anchored shopping centers and power centers that feature big box retailers. Learn more here.

The Benchmark Data & Infrastructure Real Estate SCTR – SRVR

The Benchmark Data & Infrastructure Real Estate SCTR℠ Index measures the performance of publicly-traded real estate securities, including Real Estate Investment Trusts (REITs), of exchange listed companies in the U.S. that primarily are engaged in real estate related businesses within the following business lines: (i) ) Data storage and information management services offering a range of products and services including record management, data management, document management, and data centers (ii) General Infrastructure & Outdoor Media including fiber cables, wireless infrastructure, telecommunications towers, and outdoor media sites. Learn more here.

Advantages of Real Estate SCTRs

Optimal Exposure

Correlation and risk-adjusted return metrics demonstrate that listed equity real estate investment trusts provide optimal exposure to the real estate asset class.

Daily Liquidity

Allows investors to take or adjust positions quickly and efficiently by buying and selling positions corresponding to the weights of all constituents which are traded on liquid public markets such as NYSE & Nasdaq.

Institutional Access

Provides direct access to institutional office real estate diversified over many geographic areas and management teams without investing in properties or with a real estate equity managers

Portfolio Investment Thesis

Real Estate SCTRs℠ provide tailored solutions for commercial real estate investment management. Main drivers for each real estate SCTR℠:

  • Market “cap rates”
  • Supply/ demand conditions
  • Competition from nearby properties
  • Economy
  • Employment growth
  • Consumer and business spending
  • Interest rates
  • Inflation
  • Location
  • Lease revenues
  • Property expenses
  • Occupancy rates
  • Prevailing market rental rates
  • Tenant quality and replacement cost