Craig Courtman

If you think portfolio risk management is just about diversification, think again. This article sheds light on some surprising strategies that challenge common perceptions. Here are some thought-provoking takeaways: - Did you know that reducing the number of investments in a portfolio can sometimes actually decrease risks? It's all about strategic selection. - Contrary to popular belief, actively managing risk doesn't necessarily mean more frequent trading. In fact, a hands-off approach can be a smart move. - One of the key points discussed is the importance of understanding the correlation between investments, a factor often overlooked in risk management strategies. - Asymmetric risk and the role it plays in portfolio management is explored, offering a fresh perspective on balancing risk and return. - Ever considered tail risk hedging? This article dives into this lesser-known strategy that can enhance risk management effectiveness. Share your thoughts and feelings on these unconventional risk management strategies. https://lnkd.in/ecgSpH93

💼 Hoya Capital State Of #REIT Nation: Waiting At The Bottom 🏢 REITweek Recap: 🌆 Last week, the annual REIT industry conference took place in New York City. The halls were quieter than usual as the industry grappled with two years of rate-driven headwinds. Challenges Faced: 📉 Excitement was muted due to stalled Fed pivots, lackluster IPO and M&A activity, and significant underperformance against broader market indices. Performance Struggle: 📊 Since March 2022, the REIT Index has lagged behind the S&P 500 by 40 percentage points, marking a challenging period for the sector. Optimism Amidst Challenges: 🤔 Despite the hurdles, REIT executives expressed tempered optimism, highlighting steady property-level fundamentals alongside concerns about debt-driven distress in private markets. Strategy Shifts: 💡 Many highly-leveraged property owners have adopted a "delay and pray" approach amid limited capital availability. Public REITs have been cautious but anticipate emerging opportunities as private markets stabilize. Key Insights from REIT Nation REIT Performance: 📈 Despite challenges, property-level fundamentals remain resilient across various sectors, with notable strength in residential, industrial, and technology segments. Interest Rate Impact: 📉 Rising rates have intensified distress, particularly for highly-leveraged players reliant on variable rate debt. Capital Market Dynamics: 💰 Public REITs, with access to long-term fixed-rate debt, maintain a competitive advantage amid tightening debt markets. M&A Opportunities: 🤝 Distress in private markets presents acquisition opportunities for well-capitalized public REITs, signaling potential for increased M&A activity. REIT Balance Sheet Resilience: 💪 REITs have managed to maintain healthy balance sheets despite market challenges, with solid coverage ratios and manageable debt levels. Outlook: The Road Ahead Recovery Anticipation: 🔄 While challenges persist, optimism remains for a turnaround as private markets stabilize and opportunities emerge. Strategic Positioning: 🎯 REITs are poised to leverage their competitive advantages, including access to capital and resilient property fundamentals, to navigate uncertain times and capitalize on market shifts. Conclusion: Embracing Change REITs continue to navigate a challenging landscape, but with resilience and strategic foresight, they stand ready to embrace opportunities and drive growth in the evolving real estate market. 🚀

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🌟 Wall Street Drives Office Revival on Manhattan’s Ritziest Street 📈 Financial services companies are back on the hunt for prime office space on Park Avenue, NYC. One key player in this resurgence is SL Green Realty Corp., a real estate investment trust (#REIT) that focuses solely on Midtown Manhattan. SL Green's Remarkable Recovery: * 145% increase since hitting a low in October, compared to a 66% gain in the S&P 1500 Composite Office REIT Index. * Benefiting from a resurgence in financial sector employment, now at its highest level since the 1990s. Park Avenue’s Appeal: * The area around Grand Central Terminal is experiencing a significant rise in demand as firms push for a return to the office. * Financial services account for ~40% of leasing in NYC, driving the Park Avenue frenzy. * Major projects like JP Morgan Chase’s new headquarters and SL Green’s One Vanderbilt are revitalizing this key market. Vacancy Rates: Park Avenue boasts direct vacancies of less than 10%, while Manhattan overall sits at 24%, up from 10% pre-COVID. Market Dynamics: * Despite recent struggles in office real estate, with an index down over 30% in the last five years, SL Green is emerging as a top performer in its sector. * Once the most-shorted office REIT, it’s now catching the attention of investors. Strong Partnerships: * New tenant lease with Vornado Realty Trust at 280 Park Ave. is a major boost. * Both companies saw significant gains post-refinancing a $1.1 billion mortgage in April. High-Quality Spaces in Demand: * Companies prefer well-maintained buildings, leading to stable asking rates for top-tier properties. * Lower-class buildings have seen a 10-15% drop in asking rents to attract tenants. Management Excellence: * SL Green's management team is proving to be highly effective, often exceeding expectations. * “They keep over-delivering, yet doubts remain,” noted analyst Alexander Goldfarb. Final Thoughts: As companies prioritize quality and location, Park Avenue is becoming a hotspot for financial services seeking to attract talent back to the office. SL Green Realty is leading the charge, demonstrating resilience and strong management in a challenging market. 🔑 Key Takeaway: Invest in high-quality office spaces where landlords are committed to maintaining and enhancing their properties. It's a market of opportunity for the discerning investor. 🌆✨ https://lnkd.in/gB-iR-gk

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Rates Rise • REITweek Updates • Hotel M&A REIT Daily Recap: https://lnkd.in/ewH-aJ5e One of several REITs to publish a business update ahead of the REITweek industry conference in the week ahead, Equity Residential (EQR) slipped 2% today despite providing an encouraging business update ahead of its REITweek presentation next week showing a continued rebound in multifamily fundamentals in early 2024. $EQR notched blended rent growth of 2.9% in May - up from 1.6% in Q1 and 0.8% in Q4 - comprised of buoyant mid-single digit renewal rent growth (+5.0%) and marginally positive new lease rates (0.4%). In the updated deck, EQR noted that expects to deliver full-year FFO and NOI that are "towards the higher end" of its existing guidance ranges, citing sustained high demand, pricing power in East Coast markets, and lower-than-anticipated expense growth. Apartment REITs were among the Winners of REIT Earnings Season, as five of the eleven REITs that provide full-year FFO guidance raised their outlook - led by coastal-focused REITs - while the remaining six maintained their prior outlook.

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There's a very unusual set of dynamics in the current Global REIT market - investors today are being presented the rare opportunity to buy real estate at intrinsic value, according to Resolution Capital. Resolution Capital's CIO, Andrew Parsons explains this in less than 2 minutes, in this must-watch highlight from the 2024 Pinnacle Investment Summit. For anyone interested in learning more about investing in Global REITs, watch the full presentation here: https://lnkd.in/gXdmdgmp or find more Global REIT educational content on the Resolution Capital website: https://lnkd.in/g5QjUYYX #PinnacleInsights #REITs #realestate #property #RealAssets #Investing

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The majority of US office #RealEstate #investment trusts ended the second quarter with relatively weaker operating metrics, with the demand for offices declining further as reflected in the sector's most recent dip in occupancy rates. Read the S&P Global Market Intelligence article to learn more: https://okt.to/CAFLTI

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As the CRE market navigates through distressed asset dynamics, stakeholders must remain vigilant, ready to capitalize on emerging opportunities. The convergence of strategic fund deployments and the influx of capital underscores the industry’s resilience and adaptability in seizing value-driven prospects. Click on the link for more information https://1l.ink/M4M6CNG

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The total net asset value of Starwood Real Estate Income Trust Inc. declined in May 2024 by nearly 1.98% month-over-month, from approximately $9.89 billion on April 30, 2024, to approximately $9.69 billion. Starwood REIT, or SREIT, recently lowered the capacity under its share repurchase plan beginning with May 2024 redemptions. As such, approximately 3% of each stockholder’s May repurchase request was satisfied. Starwood Capital Group Starwood Real Estate Income Trust #StarwoodRealEstateIncomeTrust #realestateinvestmenttrust #REIT #alternativeinvestments #NAV #netassetvalue #redemptions #sharerepurchaseplan #SREIT

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PERE Credit recently highlighted Waterfall Asset Management LLC's Partner and Head of ABS Strategy, Keerthi Raghavan’s insights from his whitepaper “Prime Time: Seizing Opportunities in CRE Debt.” The article discusses Waterfall’s view that scalability and sustainability are crucial factors when it comes to underwriting and how data is key for grasping opportunities in commercial real estate debt.   Read the full article here: https://lnkd.in/eXkGjaeN 

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🏥 CareTrust REIT Acquires 4-SNF Portfolio in the Mid-Atlantic for $74.7 Million 🚀 CareTrust REIT has announced its strategic acquisition of four skilled nursing facilities (SNFs) in the Mid-Atlantic, totaling approximately $74.7 million. Here’s a breakdown of the key highlights: * Diverse Portfolio: One facility includes assisted living options, enhancing service offerings. * New Operator Partnership: This acquisition marks the beginning of a relationship with a new operator managing facilities across multiple states (details not disclosed). 📈 Lease Terms: * Initial Term: 15 years * Extension Options: Two additional five-year terms * Year 1 Lease Yield: 9.3% (including transaction costs) with annual CPI-based escalators CEO Insights: Dave Sedgwick stated, “This acquisition quadruples our average annual investment rate and accelerates our mission to support strong operators in skilled nursing and senior housing.” 💰 Investment Stats: * Year-to-Date Investments: Over $900 million * Cash Reserves: Approximately $280 million on hand Recent Financial Moves: * Raised $309.9 million at an average price of $30.38/share through its new ATM program, increasing its share count to 171.5 million. * Paid off a $200 million term loan last month. Future Plans: Investment pipeline currently at $240 million in near-term opportunities, focusing primarily on skilled nursing facilities. https://lnkd.in/gJccbqqC

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PitchBook Q3 2024 Breakdown showing Add-ons, Carveouts & Divestitures are leading the way to 2024E being 22.5% higher than 2023 in deal value. While that estimate would be below 2022 it's a great first step in the right direction . . . #privateequity E78 #privatecredit

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