2024 Global Public Real Estate Outlook Report
We believe REIT share prices are ready to take off in 2024 after patiently awaiting their turn on the runway for the better part of two years.
The prevailing economic and capital market conditions have evolved into a much more favorable landscape, particularly regarding the trajectory of interest rates.
As we navigate the investment landscape for the year ahead, our focus is keenly set on REITs demonstrating resilience in a decelerating economic climate. We emphasize companies trading at an appealing valuation, offering a commensurate higher expected return.
Our conviction is substantiated by the attractiveness of REITs relative to public equities, private real estate, historical valuations, and our forward-looking projections which point to REITs currently trading at a high-teen discount to intrinsic value and implying 22% upside from current market levels.
As such, our report provides context for the recent lift in share prices, supports why we believe REITs are positioned for outperformance in 2024 and answer questions like:
- How REITs Perform in a declining interest rate environment
- Where Public vs. Private market valuations currently stand
- What is the embedded upside in REITs today
- Why rapid declines in new supply will lead to a brighter future
Finally, we spotlight a curated selection of companies in different regions where we believe there is a strong opportunity of outperformance.
On behalf of Hazelview Investments, we extend our sincere thanks to our clients and partners for entrusting our team as stewards of their investments. With a focus on the future and a vigilant eye on the dashboard, we are committed to ensuring optimal results in our endeavors.
Corrado Russo, CFA, MBA - Managing Partner, Head of Global Securities
Sam Sahn, MBA - Managing Partner, Portfolio Manager
Claudia Reich Floyd, MBA - Managing Partner, Portfolio Manager