Principal Real Estate Investors is the dedicated real estate investment group within Principal Global Investors, a global investment management leader, tracing our history back over more than six decades of real estate investment experience. Over that time we’ve built a top-tier investment platform that provides comprehensive, specialised capabilities across all four quadrants of commercial real estate – public and private equity, public and private debt. This platform gives us a unique perspective on real estate and capital markets, allowing us to deliver solutions that meet our clients’ investment goals, including sustainability and risk management guidelines. Our four quadrant investment platform includes:
- Private market equity including core, value-add and opportunistic separate accounts and commingled funds.
- Core mortgage origination and loan servicing including whole loan, mezzanine and high-yield debt strategies.
- Public market debt strategies including US CMBS
- Global and regional global property securities
Across the full spectrum of today’s commercial real estate investment opportunities, Principal Real Estate Investors provides the reach, research, and returns you need to meet your investment goals.
Principal Real Estate Investors’ latest insights, including its semi-annual Inside Real Estate outlook which includes sector forecasts among other research, are available on its public website at www.principalrealestateinvestors.com or on our dedicated IPE Reference Hub profile.
Investment principles & strategy
Four quadrants – and a 360° 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 potential added value of cross-team collaboration.
We provide expertise in all areas of the private equity real estate market, includ- ing acquisitions, dispositions, asset management, and development. We source and close a significant number of high-quality investments to meet the targeted outcomes of our investors.
Our private equity capabilities stretch across traditional sectors like office, retail, and logistics, to specialised alternative sectors such as residential and health care.
Since 1997, we have used our expert 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 and proven portfolio management team that has historically generated outperformance across market cycles.
Our real estate securities team uses fundamental research to analyse 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.
With more than 55 years of private debt investment experience and over 115 investment professionals, we’ve earned a reputation as a leader in the private debt market.
Over that time, we’ve found that delivering the best 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 deals has increased, we’ve upgraded our skill set to specialise in intricate transactions (eg, 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.
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 US fixed-rate conduit deal since 1999. Today, we research more than 1,000 CMBS issuances every year – in both seasoned and new-issue pools.
We strive to achieve consistent outperformance and believe that superior 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.
Principal Real Estate Investors claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS® standards. Principal Real Estate Investors has been independently verified for the periods of 1 April 2000 through 31 December 2017. A copy of the verification report(s) is/are available upon request.
Unless otherwise noted, the information in this document has been derived from sources believed to be accurate as of September 2020. Information derived from sources other than Principal Global Investors or its affiliates is believed to be reliable; however, we do not indepen- dently 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.