Episode 328: Green Street Says Investors Should Prioritize Public Real Estate in Current Volatility
With listed REITs trading at sizeable discounts to their underlying gross asset value, institutional investors should prioritize public real estate at this time, says Dave Bragg, co-head of strategic research at Green Street.
\u201cNow is a great time to prioritize the public market as it is on sale,\u201d Bragg told the REIT Report.
Bragg stressed the advisability for investors to have a dual mandate across the public and private real estate markets as it \u201creally does maximize one's opportunity to generate alpha.\u201d
Listed REITs have had meaningful declines this year, Bragg noted, but it reflects a broader trend, which is that \u201cjust about every asset that one can imagine has delivered a negative total return.\u201d
Bragg also noted that capital flows are a key driver of the disconnect in public and private market values. Private market flows have remained robust in 2022 and may even match last year\u2019s record-setting tally, he said. Meanwhile, flows into listed REITs \u201cremain quite tepid.\u201d