CalSTRS Hires Principal as First REIT Manager

Multiple media outlets have reported that the California State Teachers Retirement System (CalSTRS), a $229 billion pension fund, has awarded a $100 million account to Principal Real Estate Investors as its first REIT manager. CalSTRS said the REIT portfolio is “part of the real estate industry in which CalSTRS had not yet invested in.”

At the end of last year, the pension fund’s real estate portfolio stood at $31.4 billion. CalSTRS has set the maximum equity investment for public real estate within the real estate portfolio at 15%. The REIT allocation will be benchmarked to a FTSE Nareit index.

(Contact: Meredith Despins at mdespins@nareit.com)

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