Florida SBA increases real estate target allocation

The $198 billion Florida State Board of Administration (SBA) has upped the target allocation for its real estate portfolio from 9.6 percent to 12 percent and removed REITs from the portfolio.

As of June 30, the real estate portfolio had a market value of about $19 billion, and Florida SBA’s actual allocation to real estate was at 9.5 percent. Lynne Gray, senior investment officer – real estate, noted the core portfolio has driven performance during the five-year period.

In January, Florida SBA’s trustees approved a revised asset allocation that reduced the targeted allocations to global equities and strategic investments; increased targeted allocations to fixed income, private equity and real estate; and created an active credit asset class. During the past six months, staff have been executing on this revised allocation.

In related news, Florida SBA has been carrying out a succession management strategy that has resulted in the addition of key personnel.