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Why Commercial Real Estate?

Commercial real estate is often considered the fourth major asset class behind stocks, bonds and cash. Adding real estate to a portfolio may help investors increase income, reduce volatility, hedge against inflation risk and improve risk-adjusted returns.

   

Diversification

Real estate can be a powerful diversifier when added to a traditional investment portfolio and may help improve returns while decreasing overall portfolio risk.  

Attractive Income

Real estate has historically provided relatively attractive and consistent income streams via rents collected from long-term leases.

Lack of Correlation

Real estate is generally considered non-correlated to overall movements in the stock market and may help in reducing your exposure to stock market volatility.

Hedge Against Inflation

Hard assets like real estate generally move in conjunction with inflation thus providing some degree of hedging against inflation risk.

   

Why consider a diversified real estate strategy?

Various real estate sectors perform differently over time and it’s difficult to predict which one will perform best from year to year. Diversifying across multiple real estate sectors may help reduce dependence upon, and overexposure to, one particular sector. In addition, we believe that our structure as a perpetual-life REIT will allow us to acquire and manage our investment portfolio in a more active and flexible manner.

Diversification by asset class or among real estate sectors does not necessarily protect against losses.

 
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Past performance is not indicative of future results. Diversification does not assure a profit or protect against losses in a declining market. Information provided by RREEF America L.L.C. Returns are unlevered, property level and gross of fees. Returns include significant unrealized appreciation or depreciation. Source: NCREIF. NCREIF data reflects the returns of institutional quality real estate in specific sectors and does not reflect the use of leverage or the impact of management and advisory fees. RREEF Property Trust will own different types of assets than in NCREIF and will employ leverage. As of December 31, 2016.

   

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