John Vojticek, global head of liquid real assets at DWS, a global asset manager with nearly $1 trillion of assets under management, was a guest on the latest episode of the REIT Report podcast.
Vojticek commented on the operating environment for listed REITs, DWS’s recommendations for using REITs in conjunction with private real estate to complete portfolios, the access REITs provide to emerging asset classes, the benefits of global investment in REITs, and more.
Some of the key takeaways from the interview include:
- The overall operating environment for REITs is healthy, with some sectors slowing, “but just slowing to more normalized levels from elevated levels post-COVID.”
- DWS is telling its retail clients that this is a good time to add REITs. Relative to equities, REIT valuations are at their lowest level for some time. REITs are also trading at big discounts to net asset value. “What we’ve been recommending is if you have tactical opportunities within your real estate allocation, you certainly should be overweighting listed real estate at this time.”
- The opportunity to own and take part in the repricing of emerging asset classes, as they mature and become more institutionalized, is one of the best reasons to be investing in listed real estate.
- REITs can be used as part of an investment completion strategy to ensure a full and broad allocation to real estate.
- Investing globally in REITs presents an opportunity to participate in the consolidation of the real estate market and provides increased opportunity for an active manager to outperform or find relative value.