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How Investors Are Using Real Estate to Find Yield

Tuesday, October 01, 2019 | 4:15 PM Eastern Daylight Time

Are your clients seeking potentially higher income returns? Over the last 20 years, private real estate has delivered higher income returns than public real estate, equities, fixed income and cash.1  Private real estate’s historical 6.1% annualized income return represents more than 70% of its total return, an attractive feature to investors who want a balanced mix of growth and income.1

Join us as we discuss the powerful portfolio benefits private real estate can potentially deliver to individual investors, including higher income returns, diversification, and stronger risk-adjusted returns.

  • Learn how private commercial real estate has historically provided higher yield compared to public real estate, equities, fixed income or cash over the last 20 years1
  • Find out what drives yield in private commercial real estate1
  • Hear about the differences between private and public real estate and potential income and diversification benefits of private real estate1
  • Learn how your clients can access private real estate investment products1

For financial professional use only - not for use with general public.  Not for use in Ohio.

CFP, CIMA®, CPWA®, CIMC®, RMA®, and AEP® CE Credits have been approved for 1 credit hour.

John Norris
Managing Director, National Sales Manager
Black Creek Capital Markets

 

Ryan Strauser
Senior Vice President – Product Management
Black Creek Capital Markets

 

David Armstrong - Moderator
Editor-in-Chief and Executive Director of Content and User Engagement
WealthManagement.com

 

SPONSORED BY
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1 Sources: Bloomberg; NCREIF; NAREIT. 20 years ending December 31, 2018. Private real estate is represented by the NCREIF Open-End Diversified Core (ODCE) Index, an equal weighted, time weighted index representing a blended portfolio of institutional-quality real estate funds reported net of management and advisory fees (with the exception of the private real estate income data shown, which is reported gross of management and advisory fees). The term core typically reflects lower risk investment strategies, utilizing low leverage and generally represented by equity ownership positions in stable U.S. operating properties. Funds are weighted equally, regardless of size. While funds used in this index have characteristics that differ from non-traded REITs (including differing management fees), Black Creek Group’s management believes that the NCREIF ODCE Index is an appropriate and accepted index for the purpose of evaluating returns on investments in NAV REITs. Public REITs are represented by the FTSE NAREIT All Equity REITs Index, which is a free-float adjusted, market capitalization-weighted index of publicly traded U.S. Equity REITs. Equities are represented by the S&P 500 Index, an unmanaged index of the 500 largest stocks (in terms of market value), weighted by market capitalization and considered representative of the broad stock market. Bonds are represented by the Barclays Capital Aggregate Bond Index, an index of securities that are SEC-registered, taxable and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities and asset-backed securities. Bond income return is represented by the yield to worst of Bloomberg Barclays US Aggregate Bond Index. Cash is represented by the 3-Month Treasury Bill Rate, which is the yield received for investing in a government-issued treasury security that has a maturity of three months. Public real estate, bonds and equities provide ready liquidity and are easily traded.

These indices are used in comparison to the NCREIF ODCE Index in order to illustrate the differences in historical total returns generated by private real estate, public real estate, stocks and bonds. The indices presented represent investment that have material differences from an investment in a non-traded REIT, including those related to fees, expenses, liquidity, safety and tax features. The prices of securities represented by these indices may change in response to factors including: the historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates and investor perceptions. All indices are unmanaged and do not include the impact of fees and expenses. An investment cannot be made directly in any index. The returns presented are not indicative of returns to be attained by non-traded REITs.

Income return is the portion of a fund’s total return that was derived from income distributions. Comparisons shown are for illustrative purposes only and do not represent specific investments or the performance of non-traded REITs. Past performance does not guarantee future results. Non-traded REITs have the ability to utilize higher leverage than is allowed for the funds in the NCREIF ODCE Index, which could increase a non-traded REIT’s volatility relative to the NCREIF ODCE Index.

An investment in a non-traded REIT, such as the REITs sponsored by Black Creek Group or it’s affiliates, is not a direct investment in commercial real estate, but rather an investment in a REIT that owns commercial real estate. 

For financial professional use only — not for public distribution. Not for use in Ohio. Past performance is not a guarantee of future results.

The material presented in this email is intended for informational purposes only and is not representative of the actual results generated or to be generated by any of the real estate investment trusts (“REITs”) sponsored by Black Creek Group, LLC (“Black Creek Group”). It does not constitute investment advice or a recommendation. This material should not be used or construed as a recommendation to buy, sell or hold any security, investment strategy or market sector.

The views presented are as of the date published. Opinions and examples are meant as an illustration of broader themes and are subject to change at any time due to changes in market or economic conditions. There is no guarantee that the information supplied is accurate, complete, or timely. Black Creek Group disclaims any and all liability relating to this email, including, without limitation, any express or implied representations or warranties for statements or errors contained in, or omissions from, this email. Investing involves risk, including the possible loss of principal and fluctuation of value.

Any estimates, projections or predictions given in this email are intended to be forward-looking statements. Although we believe that the expectations in such forward-looking statements are reasonable, we can give no assurance that any forward-looking statements will prove to be correct. We expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein.

Investing in shares of REITs sponsored by Black Creek Group or its affiliates (each a “BCG REIT”) involves a high degree of risk, including the risk that payment of distributions is uncertain and cannot be guaranteed, the risk that an investment in any BCG REIT is not liquid, and the risk that stockholders may lose the entire amount of their investment. See the “Risk Factors” section of the applicable prospectus for each BCG REIT for a description of other potential risks of investing in that BCG REIT.  The prospectus for each BCG REIT can be found by clicking on the link for the applicable BCG REIT in the Investments section of the Black Creek Group website: https://blackcreekgroup.com/investments/.

An investment in a BCG REIT is subject to certain fees and expenses, as well as certain risks specifically applicable to an investment in the securities of a net asset value REIT, which may adversely impact the value of the investment. For more information, please refer to the applicable prospectus of each BCG REIT.

This is neither an offer to sell nor a solicitation of an offer to buy the securities described in any BCG REIT prospectus. The offering is made only by the applicable BCG REIT prospectus. This material must be read in conjunction with the applicable BCG REIT prospectus in order to understand fully all of the implications and risks of the offering of securities to which it relates. This material must be preceded or accompanied by a prospectus for the applicable BCG REIT, which contains important information about an investment in such BCG REIT.

Neither the Securities and Exchange Commission nor any other state securities regulator has approved or disapproved of the securities or determined if the prospectuses are truthful or complete. In addition, the Attorney General of the state of New York has not passed on or endorsed the merits of the offerings. Any representation to the contrary is unlawful.

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To learn more about Black Creek Group, visit  www.blackcreekgroup.com.

Black Creek Capital Markets, LLC, Distributor / Member FINRA