Animal Spirits Podcast Talk Your Book: Investing in Real Estate Credit
Dec 8, 2025
Charlie Rose, Managing Director at Invesco, shares his expertise on real estate credit strategies. He discusses the appeal of multifamily and logistics sectors amid changing office demands. Charlie highlights the importance of understanding loan structures and conservative loan-to-value ratios. He delves into the resilience of floating-rate loans during market fluctuations and the growing interest from retail investors in real estate credit. Additionally, he emphasizes the significance of a long-term investment horizon for effective portfolio management.
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Real Estate Credit Is Its Own Asset Class
- Real estate credit sits between equity and traditional debt with equity-like risk but shorter duration.
- It offers floating-rate income, lower volatility, and diversification compared with other private markets.
Focus On Demographic-Driven Property Types
- Invesco focuses on institutional commercial real estate like multifamily, logistics, and specialty assets, and avoids much office exposure.
- They target demographic-driven sectors such as apartments, senior housing, and warehouses where demand is structurally rising.
Banks Pulled Back, Investors Filled The Gap
- Institutional investors shifted allocations into real estate credit after the GFC as banks pulled back.
- Real estate credit is a large $6 trillion market that was historically bank-dominated and now offers diversification benefits.