Invesco - Wed, 05/08/2024 - 18:30

Real Estate Equity and Debt Securities Market Indicators

Listed real estate common stock ended the quarter trading at a mid-single digit discount to underlying net asset value, however, this average hides a wide dispersion of ratings, with US REITs trading up close to net asset value, but Europe and Asia still offering meaningful discounted valuations, per this metric. Listed real estate companies with favorable cost of capital relative to their private real estate investor peers, combined with strong operating platforms are most likely to find attractive investment opportunities. Ultimately, future real estate valuations will largely be determined by capital market conditions, debt financing costs, and cash flow growth prospects – all of which have a wide range of outcomes over the next 12-24 months but remain more positive where private markets have seen realistic valuation declines as interest rates have risen.¹

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1 Source: Invesco Real Estate using consensus data.

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Invesco

Invesco is a leading independent global investment management firm, dedicated to helping insurance investors achieve their financial objectives. We understand insurers have unique investment needs, from optimizing capital efficiency and yield, to managing reserves and reporting. That’s why we offer specialized solutions across a broad set of asset classes and vehicles. With $1.8 trillion in total assets under management,[1] and $56.1 billion on behalf of insurance general accounts,[2] we strive to understand your distinct capital requirements, accounting tax treatment, and risk factors.

Invesco Advisers, Inc. and Invesco Senior Secured Management, Inc. are investment advisers that provide investment advisory services to Institutional Investors and do not sell securities. Invesco Distributors, Inc. is the distributor for Invesco's retail products. Invesco Advisers, Inc., Invesco Senior Secured Management, Inc. and Invesco Distributors, Inc. are indirect wholly owned subsidiaries of Invesco Ltd.

¹ Invesco Ltd. AUM of $1,795.6 billion US as of September 30, 2024
² As of December 31, 2023

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