real-estate mark thank you for joining
us is often seen as a haven asset and
it's become a bigger part of
institutional investors portfolios as
they expand allocation to alt assets
does Donald Trump's policies in the way
he announces his policy change that
dynamic I don't think it does change the
dynamic people have been investing in
real estate for many many years as part
of their diversification part of
portfolios real estates really a hybrid
between a stock in a bond so it's got
the income like characteristics of a
bond but it's got the growth
characteristics of an equity type stock
so you can be in an alternative asset
class which provides diversification it
provides an uncorrelated return to a lot
of other investment alternatives what
about a great story in The New Yorker
the other day about all these rich tech
and hedge fund people worried about the
end of the world buying property in New
Zealand and other places that were safe
havens from all the political turmoil
Trump aside do you see that activity
picking up that people buying property
to diversify themselves not just for a
from a portfolio perspective but from a
political perspective given all this
uncertain yeah I can't comment to what
individuals have done people have built
bomb bunkers yeah we see that
institutional investors have been
allocating more to real estate so on
average the surveys that come out
institutions about 10% allocated to real
estate and what we see if they're moving
up that to about 11 and a half
sounds like small number but that in the
scope of the pie that's a lot of money
coming into real estate and people have
been seeing institutional real estate in
their portfolios for 30-40 years and
what it does to stabilize the returns in
their portfolios so both direct real
estate and REITs really helps out the
returns of these major portfolios well
in the same way we've seen wealthy
Chinese and Russians Park a lot of their
money in overseas property markets
London New York that kind of thing are
they pulling back now because of
political concerns in the UK in the u.s.
do you see any sign of that no we've not
seen any sign of the pullback but what
we've seen is people coming here to the
US for yield into some Europe for some
extent so what they're doing is they're
looking at their government bonds are
looking
the low rates so you see Japanese
investors who've been out of the market
for for a while coming here for yield
we've seen some of the Australian
investors and some of the European vest
errs coming here for higher yields than
get from there from the spreads over
government bonds which they get in their
local markets so looking around the
world obviously real estate estate is an
incredible comeback in recent years what
areas are the most exciting to you sure
well in the short term we like what's
going on the United States there's a lot
of visibility and earnings we see some
growth you see a market on the
institutional side which is about 95
percent occupied when you look at real
estate think of it like your bond
portfolios to think about duration so
the short end of the spectrum hotels
multifamily student housing very short
turnovers all the way down to net lease
and healthcare which could have a 15
year duration so we see today in the
u.s. moving from a longer term duration
where you saw a net lease in healthcare
doing very well with interest rates very
low and not a lot of growth in the
economy to an economy which could have
some more growth and adding more to the
short and intermediate term duration
asset classes so could be regional malls
some officers some industrial assets in
the US and then we shift intermediate
term maybe the next 12 to 24 months into
Europe lots of political uncertainty
going on today lots of issues to resolve
this quarter with brexit but as that
becomes resolved then you're going to
see some some big pops in that market
because there are some just glaring
values over there today