Although institutional investors have historically sought exposure to real estate primarily through the private markets, real estate allocations are evolving, according to a recent whitepaper from Ranger Global, an independent investment boutique specializing in global listed real estate.
In the past several years, sophisticated institutional investors have increasingly begun to complement their private real estate portfolios with strategic, long-term allocations to listed real estate. According to the whitepaper, portfolio expansion into the public markets has allowed for broader sector and geographic diversification and has enhanced real estate portfolios’ ESG attributes by owning best-in-class performers.
Ranger Global believes the trend of combining both private and listed real estate exposure is being driven by investor recognition of four primary factors: innovation and growth in specialty property types, public/private arbitrage opportunities, attractive inves