With Principal Real Estate, you have access to capabilities across the spectrum of public and private equity and debt. By investing across all four quadrants of commercial real estate, we’re not limited by a narrow view of the market. And our clients aren’t limited to a single strategy. We can customize a commercial real estate portfolio to help meet any unique risks and return objective. Our specialized market knowledge, dedicated and experienced teams, and extensive connections across all four real estate quadrants in the U.S. and Europe* allow us to maximize opportunities and find the best relative value on behalf of our clients.
* In Europe we offer private and public equity real estate solutions
Four quadrants—a 360o view of commercial real estate
There are four distinct “quadrants” of commercial real estate investing: public equity, private equity, public debt, and private debt. We provide focused expertise through dedicated teams in each quadrant. And we enhance that focus through the insights and cross-team collaboration to add value for our clients.
Private Equity
We provide expertise in all areas of the private equity real estate market, including acquisitions, dispositions, asset management, and development. We source and close a significant number of investments to meet the targeted outcomes of our investors.
Leasing is a key strength for our U.S. platform. We have executed more than 29,000 leases across over 500 million square feet since 2001.1 In Europe, our private equity capabilities stretch across traditional sectors like office, retail, and logistics, to specialized alternative sectors such as hotels, data centres, residential, and health care.
Public Equity
Since 1997, we have used our knowledge of the various commercial real estate security property sectors and regions to exploit market inefficiencies and generate alpha for our clients. We boast a very stable portfolio management team that has historically generated outperformance across market cycles.
Our real estate securities team uses fundamental research to analyze and invest in securities issued by real estate-related companies. Combine that with the insights from our in-house private real estate professionals and equity analysts, and the result is a higher conviction in a company’s performance potential—an important ingredient to help clients achieve the outcomes they want.
Private Debt
With more than 60 years of private debt investment experience and over 105 investment professionals, we’ve earned a reputation as a leader in the private debt market.2
Over that time, we’ve found that delivering the desired outcomes for private real estate debt investors means controlling the timing and quality of every aspect of a commercial mortgage transaction. We can do just that through our vertically integrated debt platform, which includes underwriting, closing, appraising, engineering, researching, and servicing.
As the complexity of real estate transactions has increased, we’ve upgraded our skill set to specialize in intricate transactions (e.g., B-notes, mezzanine loans, construction loans, and bridge loans). These enhancements allow us to offer our clients an even broader set of private debt opportunities from core and core plus, through value-add.
Public Debt
Investors are drawn to commercial mortgage-backed securities (CMBS) for the potential yield enhancement, diversification benefits, and attractive risk-adjusted returns. And as one of the early investors in CMBS, our public debt team has modeled every U.S. fixed-rate conduit deal since 1999. Today, we research more than 500 CMBS issuances every year—in both seasoned and new-issue pools.
We strive to achieve consistent outperformance and believe that strong security selection and disciplined monitoring are the keys to reaching that goal. Our proprietary dynamic CMBS-default model is another factor in our success, allowing granular loan-level analysis to inform a robust investment process.
Compliance Statement
1 As of 30 September 2022.
2 Principal Real Estate Investors became registered with the SEC in November 1999. Activities noted prior to this date were conducted beginning with the real estate investment management area of Principal Life Insurance Company and, later, Principal Capital Real Estate Investors, LLC, the predecessor of Principal Global Investors Real Estate.
Unless otherwise noted, the information in this document has been derived from sources believed to be accurate as of October 2022. Information derived from sources other than Principal Global Investors or its affiliates is believed to be reliable; however, we do not independently verify or guarantee its accuracy or validity. This material contains general information only and does not take account of any investor’s investment objectives or financial situation and should not be construed as specific investment advice, recommendation or be relied on in any way as a guarantee, promise, forecast or prediction of future events regarding an investment or the markets in general. The opinions and predictions expressed are subject to change without prior notice.
