Greystar is a leading, fully integrated real estate company offering expertise in investment management, development, and construction services in institutional-quality rental housing, logistics, and life sciencessectors. HeadquarteredinCharleston,SouthCarolina, Greystar manages and operates more than $320bn1 of real estate in 2511 markets globally with offices throughout North America, Europe, SouthAmericaandtheAsia-Pacificregion. Greystaristhelargest operator of apartments in the United States, manages ~997,0001 units/beds globally, and has a robust institutional investment management platform comprising more than $78bn1 of assets under management, including over $15bn of assets under development. Greystar was foundedbyBobFaithin1993tobecomeaproviderofworld-class service in the rental residential real estate business.To learn more, visit www.greystar.com.
¹ Key Metrics is as of end of Q2 2024.
Sector forecasts
INDUSTRIAL:
Greystar believes that the industrial real estate investment opportunity will remain compelling over the near and medium term. Greystar observes that e-commerce adoption pushes space requirements up in aggre- gate and pushes geographic concentration to urban areas. Further, online fulfillment requires approximately triple the distribution space compared
to brick-and-mortar retail and traditional throughput distribution. Greystar notes that structural investment in inventory and supply chains offers an under-appreciated upside lever for demand in the medium-term. The COVID - 19 pandemic exposed the vulnerability of ‘just-in-time’ supply chains for suppliers and retailers; Greystar expects a broader commercial trend towards ‘just-in-case’ management will support inventory growth and industrial demand. As a result, Greystar anticipates that an industrial investment strat- egy which considers migration patterns alongside consumer spending and e-commerce penetration will likely prove most successful in the long term.
RESIDENTIAL (USA):
Greystar expects that compelling rental housing investment opportunities will continue to exist over the medium-term, as the healthy fundamentals underpinning rental housing real estate performance persist. Greystar observes housing demand remains robust, driven by a combination of secular and cyclical tailwinds. Greystar expects population growth, coupled with a resilient labour market, to continue to support rental housing demand-side fundamentals. Further, Greystar predicts that population and employment growth, combined with evolving lifestyle changes, will result
in healthy new household formation with most households choosing to rent versus own given recent home price appreciation and high mortgage rates. Greystar observes the strength of recent rental housing demand has helped to absorb new rental housing supply, which remains elevated compared to historic averages following several years of housing supply shortfalls. 2 While there has been a rise in new deliveries, Greystar contends there is significant unmet demand in the rental housing market and a specific undersupply of more obtainable housing. Greystar believes that while demand fundamentals remain healthy, headwinds to new supply remain prevalent and include capital constraints alongside financial tightening and prolonged supply chain and cost pressures.
Finally, Greystar expects broad improvements in leasing trends to continue as strong net migration and robust demand fundamentals aid in tempering headwinds in markets with heightened supply pipelines. Greystar believes the obstacles to homeownership have never been higher in the US, as housing sup- ply has not kept up with demand, either in the for-sale or rental markets.
Investment principles & strategy
With over 30 years of experience investing in residential rental housing, Greystar has developed a successful investment approach focused on identifying and executing opportunities that seek to drive value at the property-level. Greystar believes that proven purpose-built rental design
and operational excellence lead to a premium over market rents, often above-inflation growth, while offering security of income and a lower volatility outcome. Greystar continually seeks to deploy capital in markets with strong fundamentals while executing the investment strategies it has agreed upon with its capital partners. These strategies benefit from the company’s extensive information networks and relationships, including property management clients, lenders, developers and institutions to identify investment opportunities. Greystar’s vertically integrated, global platform
is well-suited to source off-market opportunities and quickly analyse, underwrite and execute on single-asset acquisitions and developments, as well as large portfolios. Greystar believes that compelling opportunities typically include characteristics that fit within the following profile: (i) assets in attractive locations within high-barrier-to-entry submarkets in a strategy’s target markets that are poised for outperformance due to strong residential fundamentals; (ii) assets that exhibit potential for operational improvements leveraging Greystar’s property management expertise and scale; and (iii) assets that display upside potential through executing Greystar’s historically proven capital renovation programme.
Strategic corporate development
By methodically growing the company over the last 30+ years, Greystar has become the largest operator of apartments in the United States and expects to continue delivering industry leading service to the capital partners, clients and residents it serves. Greystar intends to remain a private company, allowing it the maximum flexibility necessary to achieve its business plans and navigate markets to capitalize on attractive opportunities. While the company’s operat- ing platform has achieved scale in the US, the company will seek to grow organ- ically and through strategic acquisitions. Greystar’s investment management and development businesses are expected to grow as investors increasingly allocate capital to specialist operators in an effort to mitigate intermediary fees and take advantage of operators’ deep local market expertise.
Greystar will continue to offer opportunities across the risk return spectrum with investment strategies tailored to the needs of its partners and clients. To further build out the firm’s capabilities, Greystar recently announced it will expand into the infrastructure space and is in the process of building out the platform. Like all of our investment businesses, the platform will leverage Greystar’s global reach and immense data to invest in areas such as housing
as social infrastructure, digitization, energy transition, and transportation. Greystar is excited for the opportunities in this asset class and has identified strategies within infrastructure that offer long-term, secular growth opportu- nities that the firm believes it is uniquely qualified to capitalise on.
COMPLIANCE STATEMENT
The information contained in this document is provided as of the date below, unless noted. This document does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any such offer/solicita- tion can only be made by the applicable offering documents furnished to qualified investors in jurisdictions where permitted by law. Any opinions, forecasts, projections or other statements, other than statements of historical fact, that are made in this document are forward-looking statements. Greystar gives no express or implied repre- sentation or warranty, and no responsibility is accepted with respect to the adequacy, accuracy, completeness or reasonableness of any information set out in this document, and nothing contained herein shall be relied upon as a promise regarding any future performance.