Cohen & Steers and IDR Investment Management Partner to Launch Tactical Listed and Private Real Estate Strategy
Rhea-AI Summary
Cohen & Steers (NYSE: CNS) has partnered with IDR Investment Management to launch a new real estate strategy that combines listed real estate securities and core private real estate in a single portfolio. The innovative approach aims to capitalize on valuation mismatches between listed and private real estate markets through tactical allocation.
The strategy leverages Cohen & Steers' expertise in listed real estate management and IDR's patented process to replicate the NFI-ODCE Index. Key benefits include potential for higher returns, reduced risk, lower drawdowns, and improved liquidity compared to traditional core private real estate investing. The strategy also offers broader exposure to both next-generation REIT sectors (data centers, cell towers, healthcare) and traditional ODCE sectors (industrial, residential).
Positive
- Strategic partnership combines Cohen & Steers' 40-year expertise in listed real estate with IDR's private real estate indexing capabilities
- Strategy offers potential for higher returns and reduced risk through tactical allocation
- Enhanced liquidity compared to traditional private real estate investing
- Broader sector diversification across both modern and traditional real estate segments
Negative
- None.
News Market Reaction
On the day this news was published, CNS gained 0.01%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
The strategy will actively seek to capitalize on valuation mispricing that can occur between the listed and private real estate markets with tactical shifts directed by experienced real estate and asset allocator professionals from both Cohen & Steers and IDR. The strategy seeks to leverage Cohen & Steers' nearly four decades of pioneering and leadership in listed real estate management and IDR's patented process to replicate the NCREIF Fund Index — Open End Diversified Core Equity (the "NFI-ODCE Index"), with the unique ability to tactically overweight or underweight the listed and private real estate markets.
Jon Cheigh, President and Chief Investment Officer of Cohen & Steers, said:
"There is a lead-lag dynamic in real estate investing in which listed performance leads private in both downturns and recoveries, creating pricing differential opportunities for investors. By blending listed and private real estate in a single strategy, we can help investors capitalize on valuation mismatches between listed and private, delivering the potential for higher total returns and better liquidity."
Garrett Zdolshek, Chief Investment Officer of IDR, said:
"We are passionate about the benefits that indexing core private real estate provides investors as a tool to help them achieve their investment objectives. We believe this strategy presents investors with an innovative and holistic solution for managing their listed and private core real estate allocations. Cohen & Steers' long-term track record of generating alpha and the firm's steadfast commitment to excellence makes them the ideal partner for this strategy."
The strategy seeks to optimize a portfolio's real estate allocation to help investors achieve a range of investment objectives, including:
- Enhanced risk-adjusted returns: potential to enhance risk-adjusted returns through a combination of better total return and comparable volatility relative to a core real estate allocation.
- Improved liquidity compared to direct private investing: combining actively managed listed real estate and core private real estate through index replication offers greater flexibility to manage tactically within the strategy and provides investors with improved portfolio level liquidity.
- Greater sector and property type exposure: access to both next-generation REIT sectors, such as data centers, cell towers and health care facilities, as well as traditional ODCE sectors, such as industrial and residential, for better diversification, portfolio construction and positioning for future growth.
About Cohen & Steers. Cohen & Steers is a leading global investment manager specializing in real assets and alternative income, including listed and private real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, the firm is headquartered in
About IDR Investment Management, LLC. IDR has provided private equity real estate investment management services for over 15 years to institutional investors. IDR professionals developed and manage the first and only index fund for the private equity real estate asset class. IDR is headquartered in
Important Risk Considerations: Investing involves risk, including entire loss of capital invested. There can be no assurance that the investment strategy will meet its investment objectives. Private real estate investments may have little to no liquidity. An investor should only invest in a strategy as part of an overall investment strategy, and only if the investor is able to withstand a total loss of their investment.
Website: https://www.cohenandsteers.com
Symbols: NYSE: CNS
View original content:https://www.prnewswire.com/news-releases/cohen--steers-and-idr-investment-management-partner-to-launch-tactical-listed-and-private-real-estate-strategy-302454762.html
SOURCE Cohen & Steers, Inc.
FAQ
What is the new real estate strategy launched by Cohen & Steers (CNS) and IDR Investment Management?
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