As the real estate industry continues to evolve, it is important for investors to continuously reevaluate real estate allocations to ensure alignment with the role that real estate is intended to serve within an institutional portfolio, according to ORG Portfolio Management in its recent white paper. In a total portfolio, real estate is expected to justify its allocation by providing diversification, stable income and attractive total returns while dampening volatility and maintaining a lower correlation with traditional asset classes. Private real estate in particular is intended to capitalize on market inefficiencies through active management, generating risk-adjusted returns that complement a balanced portfolio and reward investors for the illiquidity and operational intensity that the asset class demands. Because the drivers of real estate performance shift meaningfully from one cycle to the next, investment decisions should pivot
