Nuveen Real Estate [North America]

Nuveen Real Estate is one of the largest investment managers in the world with $156bn of assets under management.

Managing a suite of funds and mandates, across both public and private investments, and spanning both debt and equity across diverse geographies and investment styles, we provide access to every aspect of real estate investing.

With over 85 years of real estate investing experience and more than 740 employees* located across 30+ cities throughout the United States, Europe and Asia Pacific, the platform offers unparalleled geographic reach, which is married with deep sector expertise.

For further information, please visit us at nuveen.com/realestate

_{* Includes 370+ real estate investment professionals, supported by a further 370+ Nuveen employees.}

Sector forecasts

INDUSTRIAL: Industrial fundamentals have remained solid despite a slowing macroeconomic environment. Net absorption in the sector totalled ~196m sqft in the first half of 2022, outpacing new supply and pushing vacancy to a record-low 3.9% in Q2 2022. Industrial remained the top-performing core property type during this time, with properties within the NCREIF Property Index producing a 51.3% total return for the year ending 30 June 2022. The sector faces some challenges from both the macroeconomy and a surge of new supply in the construction pipeline, but long-term tailwinds from e-commerce logistics and supply chain diversification should keep fundamentals solid and drive outperformance in coming years.

OFFICE: The sector remains challenged as workers slowly return to the office. On the back of strong job growth, leasing activity has improved and is now at 80% of typical levels. However, a Fed-induced slowing of the economy through rising interest rates to combat inflation has clouded the growth outlook for employers and therefore their future space needs as well. Permanent hybrid scheduling could reduce demand by 15% as legacy leases roll, keeping occupancy levels lower for longer. Properties offering alternative uses such as those specialised for studio use and life sciences medical research continue to attract strong demand.

MULTIFAMILY: The apartment sector performed strongly in 2021 with record demand amidst supply chain disruptions creating record low vacancies and strong rent growth. In 2022, new development and moderating demand have caused rent growth to accelerate less quickly. Apartments in Sun Belt markets and suburban submarkets have outperformed with stable or growing cash flows. Additionally, even though coastal markets underperformed non-coastal markets in 2020, rents and values in coastal gateway markets have recovered and are noticeably higher today. Long-term demand drivers for apartments are unchanged given the necessity-driven nature and demographic tailwinds. For the year ending 30 June 2022, apartment properties held in the NCREIF Property Index (NPI) produced a 24.9% total return. Our outlook is positive for the sector given healthy fundamentals and demand tailwinds but we are cautious of markets with large pending supply pipelines.

RETAIL: The retail sector has surprised to the upside coming out of the pandemic. Consumer demand remains resilient in the face of rapid inflation. Retail sales in August of 2022 sit almost 30% higher than early 2020 levels. Tenant activity has been robust and has led to elevated levels of leasing activity and absorption. Vacancy rates across neighbourhood, community and power have fallen to historic lows. The mall sector recovery continues to lag. Total returns for retail eclipsed the office sector in the first quarter of 2022 coming off several years as the bottom performer. Trailing four quarter returns for retail totalled 7.9% (5% income return and 2.8% appreciation) as of the second quarter of 2022.

ALTERNATIVES: Alternative property types have proven to be more resilient than traditional property types during periods of volatility because their fundamental drivers rely less on economic growth and more on long-term demographic, healthcare, and technology-related trends. The continued demographic shift of aging millennials will fuel demand for alternative housing sectors, including single-family rentals and self-storage. Additionally, the transformation of the US healthcare system should drive outperformance in healthcare-centric real estate. Technology real estate sectors, such as cell towers and data centers, are positioned to benefit from an evolving digital economy and growing next-generation demand drivers, such as a greater need for mobile connectivity, network latency, and data storage capabilities.

Investment principles & strategy

A client-focused culture is at the core of who we are and what we believe our clients expect from us.

We take a stable, risk-aware investment approach to our business, which places our clients and investment teams at the heart of our process. Our fund management teams work closely with our clients to deliver investment performance that meets their objectives. The teams operate within a defined investment process with established risk controls, accompanied by investment committee oversight.

Our tomorrow’s world investment philosophy incorporates strategic insights on megatrends throughout every stage of the investment process, looking beyond market cycles to assess how structural trends can best inform long- term real estate investments. Environmental and social governance is embedded into everything we do for the enduring benefit of clients and society.

Strategic corporate development

We work closely with our clients to develop long-term strategic relationships, to understand their goals and meet their requirements. To ensure we provide each investor with a tailored solution, made up of a range of products and strategies, we have developed our range of solutions to offer the resilient, enhanced, debt and impact series:

• Our resilient series is designed for investors who are focused on diversification, income and long-term capital growth. Our strategies focus on investing in high-quality assets in leading cities that are well positioned in terms of long-term structural trends, including demographic change, urbanisation and technology.
• Our enhanced series applies strategies that work within market cycles, use a more active asset management and repositioning approach, and/or invest in emerging sectors and locations. These strategies are designed for investors that are looking for an enhanced level of capital growth.
• Our debt series is designed to provide investors with access to secure, income-focused returns. Our strategies may suit cautious investors seeking attractive levels of income with a measure of downside risk mitigation against short-term capital cycles.
• Our impact series is the newest addition to the offerings and is designed with the intention to generate positive social and environmental impact alongside a financial return. Our strategies are focused on developing solutions for people and the planet.

_{COMPLIANCE STATEMENT}

_{All information is as at 30 June 2022.}

_{These materials are only for use by the intended party and may only be circulated only to persons whom they may lawfully be distributed. Any entity responsible for forwarding this material to other parties takes responsibility for ensuring compliance with local laws, and in particular any applicable financial promotion rules. The information presented in these materials is believed to be materially correct as at the date hereof, but no representation or warranty (express or implied) is made as to the accuracy or completeness of any of this information. Data was taken from sources deemed reliable, but cannot guarantee its accuracy. The statements contained herein reflect opinions as of the date written and are subject to change without further notice. Nothing set out in these materials is or shall be relied upon as a promise or representation as to the past or future. This information does not constitute investment research as defined under MiFID. Nuveen provides investment advisory solutions through its investment specialists.}