The landscape for real estate fundamentals looks “very favorable” going forward, supported by GDP and employment growth, according to Lowell Bolken, portfolio manager of the Securian AM Real Asset Income Fund and Real Estate Securities Fund.
“We think employment will be strong as job openings are still above the actual unemployed population right now,” Bolken told Nareit’s REIT Report.
He noted that in terms of REIT valuations, it’s a mixed picture. However, “we're very confident where the economy is going in terms of real estate and other sectors…growth is still in the offing.”
Bolken, meanwhile, noted that while inflation might not last longer term, “it's less than transitory.” As a result, Securian is positioning itself for short term inflation by focusing on assets with shorter term leases such as apartments, self-storage, and hotels, while de-emphasizing the net lease sector.
During the interview, Bolken also discussed the importance for investors to assess the long-term viability of real estate assets and their green tech credentials. While several REITs have become leaders in sustainability, large data center REITs in particular “have taken the forefront and many have committed to becoming more green.”