Alaska Permanent Fund to lower real estate pacing targets for 2024

The $76 billion Alaska Permanent Fund Corp. (APFC) has proposed a new pacing plan for fiscal year 2024, lowering the deployment targets for its real estate portfolio.

The real estate pacing plan is 7 percent lower than fiscal year 2023, pushing toward the long-term target pacing of 13 percent by fiscal year 2025.

As of April 30, $1.05 billion has been deployed to the real estate asset class in fiscal year 2023, against the annual target of $700 million, plus or minus $500 million. The sovereign wealth fund is targeting the deployment of $650 million in 2024, with a band of $0 to $780 million depending on opportunity set and CIO approval.

APFC staff believes there is flexibility to adjust pacing amounts up to an additional $130 million above the target. No minimum pacing amount is being proposed.

APFC historically has pursued a strategy of holding high-quality, generally class A properties on a direct basis. In recent years, open-end funds, debt investment