real estate

“A sector like real estate is sort of a boring sector, right? There's not that many people who are looking security by security and saying, you know, here's the characteristics of REIT A versus REIT B, right? It's not a particularly exciting area, but it's one …”

“So if you take into account the real estate, we still have two thirds of our exposure.”

“Today we're up around, to give you some idea, an allocation of between five and 10% of the total fund is in infrastructure, and similarly even probably higher weighted a little bit in terms of real estate And in PE, I think it's around the same five, five to s…”

“Property at the moment Is almost all domestic. It's unusual that that's the case because we just have this advantage that we can create products, whereas most pension funds here, the products constrained, so they have to go overseas.”

“That really is the big innovation, is this idea that digital wallets will be able to hold all different kinds of assets. You'll be able to hold shares of stock and bonds and pieces of real estate, maybe the mortgage to your home, like all these different sorts…”

“A graph of tenure yields going back 40 years. And the reason I keep it there is that it looks like a ski slope, right? It goes from 14% down to where it is today. And there's been some gyrations, but it's basically, I say this to all my contemporaries, like no…”

“What we're getting is, yes, we're getting beta, but we could get cheaper beta buying a REIT, for God's sakes, people.”

“So right off the bat, we said, look, we're not going to do any mining. We're not going to do any real estate outside of the US. We're not going to go to these parts of the world. It doesn't matter if that's in the index. We're just not doing it.”

“If you're deal constrained, we're in real estate. If you can only do a few deals a year, you can't afford to pay 19 because there's better deals coming along. You just got to do them.”

“What I would say about thematic investing is it doesn't really change the numbers. You know what I mean? Meaning like, it's not like you're shooting for a lower IRR or a lower anything. It's just that it's harder to invert the arguments surrounding your assump…”

“That said, probably the biggest bang for the buck is in alternatives. It's probably in illiquid asset classes. It's in people who think differently about venture or private equity and Even probably real estate on some level.”

“The major driver of portfolio risk is growth and equity growth. But that exists in equities, and that exists in high yield, potentially, real estate, certainly private equity, and maybe even other investments. And so having a very clear picture of where that e…”

“Even now, if you're not a real estate company, you don't have to mark it up”

“This can be a really broad set of assets from digital goods like virtual lands and artwork to a claim on physical assets like real estate or clothing items.”

“And if we even talk about the more traditional stuff like NFTs representing tickets or financial assets or real estate, these are just more efficient ways of transferring and without having as many paperwork and middlemen involved. And so this is a net benefit…”

“On the venture side, because of who we are and what we've built and the brand we've built, we feel like we can invest in companies at favorable terms, With some downside protection that has an opportunity to be a home run or grand slam in real estate. We never…”

“We're not in infrastructure. We're not in energy investing. There's a lot that we're not in, and frankly, we weren't even in real estate, even though we tried for all 30 of my years up until a couple years ago when we actually took over Harvard's real estate b…”

“One of the rules of real estate is when prices get to replacement costs, you should sell, because when the prices get that high, new construction begins”

“And certainly, when the yields that people are willing to buy stuff for today reminds me of the story about shorting a stock at a dollar. Well, the stock may be a lousy company, but the odds are you can make a dollar or you can lose unlimited amounts of money.…”

“That is when, to me, private equity, private markets established themselves. It was the greatest thing that happened to the industry. And I know people will go, that asshole, what's he saying that for such a horrible time. But it's because at that point, every…”

“It's real estate with some unique patterns, but it's really just, you got this asset. If you don't have a tenant for it, it's worth nothing, and so you get a cash flow off that, and you might get to increase your rent with inflation if it's a bridge, but we ju…”

“And I'd even go so far to say real estate really is just a spread product. It's a bond. It's a fixed income. The building itself is worth nothing if it doesn't have tenants. Real estate's really just a fixed income portfolio of credits and the credits are The …”

“Mostly direct. We're 80% direct. So we own a portfolio of 20 garden style apartment buildings and data centers and a lot of industrial warehouse and cold storage.”

“On a CLO, there's always the next one, and we have to keep that in mind. Let's not, if we can sense this, someone else bidding keenly. Okay, that's fine. We'll let this one go. That's the nice thing in our world. There's always another. They're good and bad. T…”

“Unfortunately, there are other parts of the portfolio that are not returning capital, and I'm not speaking about venture, but natural resources and real estate, which probably we would have expected would have returned a little bit more capital. That's been a …”

“Generally speaking, we want two-thirds or more of our businesses to be real estate intensive.”

“We love to invest thematically. So we identify a theme that we believe has legs, and then we like to vertically integrate so we can own both the real estate associated with that theme, as well as an operating capability. So build out a management team that can…”

“Real estate, first of all, stay away from the double promote. You don't pay a private equity firm to pay a private equity firm.”

“If real estate does make it into the portfolio, it's usually Opportunistic. It's usually small, high vacancy development things. Right now we don't have any.”

“We've got specialty advice and implementation capabilities underpinned by research across private equity, private debt, infrastructure, real estate, and hedge funds. And actually they're each about 20% of our AUM.”

“These are the people who create the value. The people who build the buildings, the people who operate the buildings. Don't get me wrong. You need to be a smart investor, and you need to have the right capital structure and the right alignment, and those are al…”

“I think we're going to start seeing this in venture and bio right now, and maybe real estate where deal volume is slow. What are they doing all day? How do you manage that as the managing partner? You're going to start seeing that.”

“What we've set up in a number of areas are a fund of one structure where we're still working with an expert third-party manager who But we're just the only investor in that vehicle, and the rationale for that has really just been that we're very long-term, and…”

“We have some very meaningful holes in the portfolio when you look at us compared to peers, one of which is real estate. We have very little private credit to speak of. We don't have any global emerging markets managers. There are all sorts of things that we do…”

“Households have made 10 trillion dollars in real estate over the last five years, and if you get yields down, not only would they start buying homes again, but they might dip into that home equity through HELOCs.”

“Most of that is going into the big funds, the brand names. You even see in real estate where the mid-sized funds can't raise capital. So you have a big gap and a weird inefficiency in the lower end because a lot of institutional capital now can't reach it.”

“If real estate went down, you could buy it and just wait, and generally it would come back over time, and that's certainly not true anymore.”

“They used to call it the four major food groups, office, industrial, retail, and residential, and those companies accounted for over two-thirds of the entire REIT index.”

“By the way, that's going to help you to recruit and retain human beings. It's hard to recruit and do a TPA. You recruit people into private equity jobs, real estate jobs, because we demand, especially at the senior levels, a certain level of expertise and netw…”

“That new construction falling way off, on top of it, construction costs still being so elevated, means we think this cycle, there'll be more room for rents to run and values to grow before that inevitable supply side response kicks in.”

“For the assets we own, it's not just buy and hold, it's buy and change. You can transform these assets. That's one of the things that's less understood about both real estate and infrastructure is how active those assets are. It's not Just that durable cash fl…”

“There are also a lot of other ways to play AI in real estate and infrastructure that get less attention, and that therefore have Better risk-adjusted return because you have a better basis on entry.”

“Real estate values are still down 20 plus percent, while the broader investable universe is at all time highs.”

“Real estate is just a function of how people use space, where they want to live, how they want to work, how they want to consume goods, whether it's in store or online, how they want a vacation. That constantly brings you back to basic judgments about how we l…”

“When AI comes up with anyone in real estate or infrastructure, it's immediately just data centers. There's no question that that is probably the single biggest beneficiary of the AI trend.”