We believe private real estate is a foundational component of your private market portfolio. Explore the following potential benefits of investing.
Investors can gain from increased demand for rental properties as housing affordability approaches its lowest level in 33 years.
Income earned from regular rent increases can help you keep pace with high levels of inflation expected in the foreseeable future.
Private real estate has historically outperformed U.S. equities and fixed income on an absolute and risk-adjusted basis since 2000.
It also delivers relatively consistent returns no matter the market environment. In fact, it’s only exhibited 40% of the risk of U.S. equities as measured by volatility since 2000.
Given the current volatility in traditional markets, real estate can also act as a potential hedge against market downturns and has historically demonstrated low correlation with the equity and debt markets.
It’s also worthwhile to highlight the various advantages that come with investing in private real estate, in particular. Real estate investments can be private or public, depending on whether they’re exchanged on the public stock exchange. In general, private real estate has outperformed its public market equivalents on a risk-adjusted basis.
1 National Association of Realtors, June 2022. Median income = qualifying income = 100.
2 Rent growth is represented by real estate net operating income: NCREIF; inflation: Moody’s Analytics; 01 Jan – 31 Dec 2021 (based on most recent data available). Past performance is not indicative of future results. It is not possible to invest directly in an index.
3 Yieldstreet and Bloomberg as of 6/30/2022. Annualized return and standard deviation are calculated on a quarterly basis from 1/1/2000-6/30/2022. “Private Real Estate” represents the NCREIF Property Index. “US Equities” represents the S&P 500 Index. Past performance is not indicative of future results. It is not possible to invest directly in an index.
4 Yieldstreet and Bloomberg as of 6/30/2022. The chart represents all quarterly drawdowns in which the S&P 500 detracted more than 10% between 1/1/2008-6/30/2022. ”US Equities” represents the S&P 500 Index while Private Real Estate represents the NCREIF Property Index. Past performance is not indicative of future results. It is not possible to invest directly in an index.
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