Nareit's REIT Report Podcast Principal’s Rich Hill Says Listed REITs Optimize Private Real Estate Portfolios
Jul 17, 2025
Rich Hill, the global head of real estate research at Principal Asset Management, shares insightful perspectives on the current REIT landscape. He highlights the importance of incorporating listed REITs into private portfolios to enhance stability and optimize returns. Hill discusses global opportunities in diverse sectors like data centers and senior housing, emphasizing their potential amid market dislocation. He advocates for a strategic 10% to 30% allocation to listed REITs, reinforcing their role in navigating the evolving commercial real estate market.
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Global Diversification in Real Estate
- Commercial real estate should be seen as a diversified portfolio across various property types globally.
- Opportunities to add value through listed REITs exist worldwide and will continue to grow.
Listed REITs Show Market Resilience
- Listed REITs rebounded over 30% since October 2023 despite volatile market events.
- They provide resilience and income returns are valuable in uncertain environments.
REITs Lead Market Recovery Signals
- Listed REITs serve as leading indicators for commercial real estate market trends.
- Private market valuations lag but are starting to catch up with listed REIT market recovery.