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Invesco Real EstateConsiderations for investing in global real estateThis document is for Professional Clients only in Dubai, Continental Europe (asdefined in the important information), Ireland and the UK, for Qualified Investorsin Switzerland, for Institutional Investors only in the United States, Australiaand Singapore, and for Professional Investors only in Hong Kong and in Japan asdefined under the Financial Instruments and Exchange Law of Japan. In Canada,the document is intended only for accredited investors as defined under NationalInstrument 45–106. It is not intended for and should not be distributed to, or reliedupon by, the public or retail investors. Please do not redistribute this document.Tim BellmanHead of Global Research,Invesco Real EstateSabrina UngerAnalyst, Invesco Real EstateMany investors are familiar with the appeal of holding real estate. Witha generally low correlation to other asset classes, it can serve as aninstant diversifier in a mixed-asset portfolio. Historically, real estate hasdelivered strong relative performance across multiple cycles comparedto other asset classes, and its characteristic stable income, underpinnedby long-term leases, makes it a compelling alternative to traditionalfixed-income instruments. Participation in real estate from the investorcommunity is one of the highest among the various alternatives assetclasses, and is expected to grow in importance in portfolio allocationsmoving forward.1In the past, real estate investors aroundthe world have tended to be domesticallyfocused, but increasingly many are nowinvesting in non-domestic or even globalreal estate. Large institutional investorsand Sovereign Wealth Funds have beenat the forefront of the shift, driven bythe generally stable income componentthat comes from real estate and thepotential for diversification benefits,risk reduction and the possibility ofreturn enhancement.2 Likewise, a lack ofdomestic investment opportunities hasalso played a role in investors’ increasingappetite for an international portfolioas a way to significantly broaden theiropportunity set (Figure 1).Admittedly, assessing the global realestate market and the different means ofgaining exposure through listed, unlisted,equity and debt vehicles can be a dauntingtask. Investors must assess various factorsbefore making an allocation, includingthe impact of currency fluctuationsand foreign tax laws. They must alsoassess their own internal capabilities forevaluating such an allocation.In this paper, we consider four elements:– Ways to invest in real estate– The depth and liquidity benefits ofglobal real estate market opportunities– A case for long-term investmenthorizons and– How the addition of non-domestic realestate exposure may serve to enhancereturns and lower risk in a multi-assetclass portfolio.Figure 1Why real estate?Investors have different motivations forconsidering international real estateSize and performance– Size of the real estate asset class– Lack of domestic real estateopportunities– Markets comparable in transparency– Income orientation– Strong relative historical returnperformanceCharacteristics and portfoliocontribution– Different growth drivers– Diversification with traditionalasset classes– Diversification with domestic realestate market– Inflation hedging– Portfolio risk reduction andreturn enhancement
Ways to invest in global real estateThere are multiple ways to access the realestate asset class, through equity and debtpositions via listed and unlisted vehicles. Inrecent years, the potential ways to investin real estate have become more varied;while global public real estate markets havelong been accessible to investors, it is onlyrecently that pan-regional, open-endedcore funds have become available globally,offering access to global unlisted realestate. Prior to that, unlisted real estatewas accessible primarily through closedend, higher-return strategies or throughmanagement-intensive direct ownership.This enhancement to the composition ofavailable investment vehicles is providinginvestors greater opportunities fordiversification by adding unlisted globalreal estate to their portfolios.Does it matter? It is noteworthy that whilelisted and unlisted real estate tend to havesimilar characteristics in the long term,they have varying characteristics in theshort term, driven in large part by theliquidity component of each. Listed realestate offers daily liquidity, but this comeswith higher volatility, whereas unlistedreal estate generally offers only periodicliquidity, which underscores generallygreater stability under normal marketconditions (Figure 2). This is beginning tochange. Increasingly, a range of unlistedvehicles is evolving that provides greaterliquidity than the traditional closed-endand open-ended funds, often through ablend of direct and listed real estate.In addition to choosing an investmentvehicle, various real estate strategies existacross the risk-return spectrum that maywarrant consideration depending on aninvestor’s goals and risk tolerance. Theoptions include core, core plus, value-addand opportunistic approaches.Core assets are generally stable, cash-flowproducing assets with stable occupancy, whileopportunistic assets represent the riskiestreal estate approach, wherein investors lookto achieve higher returns by tackling assetswith structural or financial obstacles.While it is likely that an institutionalinvestor may pursue a combination ofreal estate approaches to achieve theirperformance objectives, in this paperour focus is on equity positions largelywithin private real estate, as unlisted realestate represents the largest share ofthe estimated global investable universe,while listed indices represent less than10% of the universe based on their marketcapitalisation (Figure 3).3Global interest in real estate has continuedto increase in recent years as investorsseek yield amidst the ultra-low interest rateenvironment. Even as central banks havebegun to signal modest increases it seemsunlikely that interest rates will return tohistorical average levels anytime soon.Figure 2Comparison of listed and unlisted real estateListed (Public) Real EstateUnlisted (Private) Real EstateReturnBroadly similar returns over the long termBroadly similar returns over the long termRisk (Volatility)More volatileLess volatileLiquidityVery liquidLess liquidDiversification benefitModerate but not as large asprivate real estateSubstantial over the long termInvestment horizonFlexibleGenerally longer termAvailability of informationReadily available, real-timetransaction basedImproving but less readily available,mainly appraisal-basedTimeliness of informationDailyQuarterly (or monthly in selected countries)Sources: Invesco Real Estate, Bloomberg Barclays, and FTSE International Limited (FTSE) 2019.Figure 3Different measures of the global real estate universe - Estimated size (US bn)Total investible universe4Core rth America6,830 (26%)North AmericaNorth America877 (50%)Asia Pacific8,607 (33%)Asia Pacific68 (18%)Asia Pacific575 (33%)Europe80 (21%)Europe268 (15%)EuropeOther10,223 (39%)417 (2%)236 (61%)Other38 (2%)Source: Invesco Real Estate based on data from Cushman & Wakefield Money into Property 2017 Report, MSCI Global QuarterlyProperty Fund Index, and FTSE EPRA/NAREIT Global Real Estate Index as of May 2019.02 Invesco Real EstateConsiderations for investing in global real estate
Depth and liquidity issuesGoing global can open additionalinvestment opportunities to access qualityreal estate investments. The investableuniverse in sophisticated, transparentmarkets is estimated at US 19.3 trillion,or roughly 74% of the total global realestate investment universe (Figure 4).Even the largest country is only a smallproportion of this total. Apart from theUnited States, no other single countryrepresents more than 10% of the totaltransparent global real estate universe.As such, it is not surprising that manyinvestors around the world are lookingabroad to source real estate deal flow.Figure 4Share of transparent investableuniverse by country – Estimatedsize (US trillion, %)8This elevated external focus has spurredgrowth in transaction volumes globally.According to Real Capital Analytics,quarterly transaction volumes haveranged from US 130 billion to US 532billion since 2010 (Figure 5). Through2018, property transactions totaledUS 1.68 trillion, an increase of 3.8% yearover year and 22% above 2016 volumes.7Significantly, the increased transactionvolume has not been isolated to any oneregion, indicating that there are liquidmarkets accessible across the globe.Figure 5Quarterly transaction activity 2007-18 (US bn)AmericasAsia Pacific20072009Europe4-quarter global moving average2011201320152017( )600Total19.3trillion550500450400United States32.7Germany9.7Japan8.1United ada2.7South Korea2.7Others35030025020015019.610050Source: Invesco Real Estate using datafrom Cushman & Wakefield Money intoProperty report and JLL TransparencyIndex as of May 2019.03 Invesco Real EstateThe figure relates to direct transactions involving all property types including land.Source: Invesco Real Estate based on data from Real Capital Analytics as of May 2019.Considerations for investing in global real estate
Diversification20Hong KongTaiwanSwedenSouth AfricaChinaNorwayCanadaIncome return (LHS)Capital growth (LHS)Income return's share of total return (RHS)AustraliaDenmarkUnited StatesSingaporeSwitzerlandNew ZealandGlobalSpainNetherlandsUKPolandCzech RepublicJapanPortugalGermanyFinland(%)ItalyFigure 6Annualized average income return and capital growth return (2005-2018)9FranceFurthermore, when considered as part ofa mixed-asset portfolio, the income returnof real estate, both public and private,becomes even more compelling. Over theperiod 2001-18, global equities derived45% of their total return from income, with55% the result of capital appreciation. That55% from appreciation was responsiblefor 97% of equities’ total return volatility(Figure 7). By comparison, for real estateglobally, income contributed a greatershare of total return (53% for listed and80% for unlisted real estate) and was onlymodestly responsible for the volatility ofreturns (Figure 7). This suggests that aportfolio that adds global real estate standsto diminish risk through lower volatility.KoreaInvestors’ appetite for real estate isspurred in part by the asset class’sgenerally stable income component.Across the globe, income returns as ashare of private real estate total returnsis generally quite high (Figure 6). Withthe exception of a few high-growthmarkets such as South Africa and HongKong, annualized total returns are drivenprimarily by income.(%)12018100161480121060864042200Source: Invesco Real Estate using data from NCREIF and MSCI as of April 2019. Past performance is not a guide to future returns.An investment cannot be made directly into an index.Figure 7The income component of total return10Income returnCapital growth returnTotal return componentsRisk (volatility) share of standard ions for investing in global real estate100808060604040203915Source: Invesco Real Estate based on data from MSCI, Bloomberg Barclays and Macrobond as of May 2019.04 Invesco Real Estate(%)7220
Diversification (continued)Beyond country-to-country diversificationbenefits, expanding one’s real estateportfolio outside one’s home countryto include a global mandate can alsoproduce a smoothing effect on returns.Figure 9 reflects unleveraged real estatetotal returns for 32 countries around theglobe, with the grey lines each reflecting adifferent country’s historical returns.Over the period from 2008 to 2018,a period including the Global FinancialCrisis and its aftermath, the globalunlisted real estate portfolio returnedan annualized average of 5.6% with astandard deviation of 6.1%. In any givenyear there are markets that exhibitsignificant outperformance and thosethat reflect underperformance. However,given the difficulty in timing country peaksand troughs, particularly without localexpertise, a diversified global portfolioseems to suggest a smoother trend line.Canada1.00United States0.83 1.00Australia0.69 0.90 1.00China0.29 0.31 0.07 1.00Hong Kong0.59 0.36 0.27 0.32 1.00Japan0.49 0.78 0.92 -0.10 -0.09 1.00Korea0.50 0.36 0.58 -0.09 0.34 0.52 1.00Singapore0.82 0.70 0.73 0.29 0.41 0.63 0.84 1.00United Kingdom0.19 0.49 0.41 -0.02 0.41 0.28 -0.13 -0.07 1.00France0.75 0.83 0.93 0.23 0.50 0.75 0.72 0.85 0.31 1.00AmericasAsia gdomCorrelation ( .80)Correlation ( .80)SingaporeKoreaJapanHong KongChinaAustraliaUnitedStatesCanadaFigure 8Direct property indices – correlation in all-property unleveredtotal returns, 2007-1811NetherlandsUnited Kingdom had property returncorrelations below 0.8 for all of the other15 markets and Korea, Germany and Italyfor 14 of the other 15 markets (Figure 8).GermanyAt its core, real estate is a local asset class,driven by local demographic and economictrends. The lack of synchronization ineconomic cycles globally reduces thecorrelation in real estate returns; thus,moving beyond one’s domestic market canoffer significant diversification benefitsand dampen volatility. As evidenced bycorrelation data from unlisted propertyreturns across 16 sizable real estatemarkets, there is a clear diversification ofproperty returns around the world. Of the16 countries shown, each had correlationsbelow 0.8 with at least ten other countries.Since 2007, China, Hong Kong and theGermany0.02 0.40 0.56 -0.20 -0.26 0.64 -0.08 0.00 0.36 0.33 1.00Italy0.40 0.47 0.68 0.33 0.37 0.56 0.74 0.74 -0.03 0.82 0.32 1.00Spain0.25 0.66 0.85 0.05 -0.07 0.85 0.36 0.43 0.35 0.72 0.77 0.68 1.00Sweden0.50 0.77 0.91 0.03 0.35 0.77 0.43 0.49 0.56 0.86 0.62 0.65 0.85 1.00Poland0.80 0.72 0.70 0.43 0.31 0.60 0.64 0.92 -0.14 0.78 0.14 0.73 0.48 0.47 1.00Netherlands0.08 0.34 0.61 0.02 -0.08 0.63 0.32 0.32 0.02 0.55 0.80 0.75 0.82 0.66 0.42 1.00Source: Invesco Real Estate based on NCREIF and MSCI as of May 2019. Past performance is not a guide to future returns.Figure 9Direct real estate total return by country (%, local currency, all property TA: 8.0%StDev: 5.2%-20Each grey line represents the annual total return series over time for an individual country (32 countries).Source: Invesco Real Estate using data from MSCI and NCREIF as of May 2019. Past performance is not a guide to future returns.05 Invesco Real EstateConsiderations for investing in global real estate
A case for long-term investingAs Figure 9 demonstrates, local real estatemarket performance varies. Yet, despitea dip during the global financial crisis, theMSCI Global Quarterly Property Fund Index(an index of total returns for global openended core funds) has increased steadily,by more than 70% over the last 11 years(Figure 10).of the last cycle (assumed to be at theend of 2008 for these purposes) but whoheld on to the investment through thesubsequent decade, would have achieveda 5.1% per annum total return (Figure 11).And this would have included a healthyannual dividend payment, likely in therange of 3-5% over the period.This would suggest that an investor witha longer-term hold horizon for real estatemay fare better than one who seeks totime its investments. But does this theoryhold up?Extending the thought experiment, whatif another investor had also invested at theexact same peak of the market in 2008,but then had invested equal amounts eachsubsequent year? This more active investorwould have achieved an 8.6% total return,again with a 3-5% annual dividend payment.To consider the impact of trying to “timethe market” versus taking a long-term,disciplined approach to investing in realestate, we have sought to demonstrateseveral hypothetical investment scenariosyielding different results.An investor with the worst timing, i.e. onethat invested once only at the exact peakGiven the difficulty in successfully timingthe market, this example suggests that aninvestor willing to weather potential shortterm volatility, may yield greater returnsby making a consistent allocation to realestate, regardless of the original cyclicalstarting point.Figure 10Global real estate performance since the 2008 peak – MSCI Global Quarterly Property Fund Index(reweighted by region, local fund currencies) December 2007 10012Dec07Dec08Global FinancialCrisisDec09Dec10Dec11Dec12European Sovereign Debt CrisisDec13Taper 10080Source: Invesco Real Estate using data from MSCI Global Quarterly Property Fund Index as of 31 December 2018.Figure 11The case for long-term investing - Investment performance if you had invested US 100 million into the reweighted GPFIat the 2008 peak (Q1 2008- Q4 2018, % per annum)13Invest only at 2008 peakInvest at 2008 peak and every 12 months thereafterIRR(%)108.6865.142Source: Invesco Real Estate using data from MSCI Global Quarterly Property Fund Index as of 31 December 2018.06 Invesco Real EstateConsiderations for investing in global real estate
The role of global real estate within a mixed-asset portfolioAccording to the 2018 Institutional RealEstate Allocations Monitor, which tracks208 institutional investors representingover US 11.0 trillion in total assets andreal estate assets of approximately US 1.0trillion, investors' target allocations toreal estate have increased 150 bps since2013, reaching 10.4% in 2018 (Figure12). Approximately 61% of institutionssurveyed have a target allocation greaterthan 10%.14Figure 13 illustrates the correlationsbetween global real estate and variousglobal traditional asset classes. A globalprivate real estate portfolio (representedas the Custom MSCI Global QuarterlyProperty Fund Index) produces very lowcorrelations with global equities (0.24),global bonds (-0.16), and even globalpublic real estate (0.23) suggesting ablend of public and private real estate canalso create diversification benefits.Figure 12Target allocations to real estate – Weighted average target allocation to real estate, all institutions, 2013-19201320142015201620172018(%)Expected ource: Invesco Real Estate based on data from the 2018 Institutional Real Estate Allocations Monitor published by CornellUniversity’s Baker Program in Real Estate and Hodes Weill & Associates as of October 2018.Figure 13Correlations of global real estate and other asset classes (local currency returns with other sectors – Q1 2008-Q4 2018)15Market Sector IndexCustomBloombergMSCI GlobalFTSE Barclays GlobalQuarterly PropertyMSCIEPRA/NAREITAggregateFund IndexWorld Index Developed IndexBond IndexCustom MSCI Global Quarterly Property Fund Index161.00–––MSCI World Index FTSE EPRA/NAREIT Developed Index18Bloomberg Barclays Global Aggregate Bond Index19Source: Invesco Real Estate based on data from MSCI, Bloomberg Barclays, FTSE EPRA/NAREIT and Macrobond as of May 2019.07 Invesco Real EstateConsiderations for investing in global real estate
The role of global real estate within a mixed-asset portfolio (continued)– If the real estate was exclusively inthe unlisted form, it would also havelowered the portfolio volatility from8.5% standard deviations by 50-150bps to 6.8-7.9% - but at the expenseof adding a degree of illiquidity to theportfolio.– If the real estate was exclusively inlisted form, it would have enhanced thereturn by 25-75 bps without sacrificingliquidity but at the expense of highervolatility (up by 25-100 bps).– Finally, within the real estateallocation, a blend of 10-30% listed and70-90% unlisted real estate would haveboth enhanced portfolio returns andlowered volatility, without sacrificingmuch liquidity. This cone of improvedrisk-adjusted returns is highlighted ingrey in Figure 15.To help to visualise the impact of addingreal estate, Figure 14 shows the efficientfrontiers for two hypothetical portfoliosover the period 2005-17. The first is a“traditional” equities/bonds portfolioconstrained to a maximum allocation of 60%to either equities or bonds (dark blue). Thesecond is a portfolio enhanced with globalreal estate constrained to a maximum 20%weighting over the 2005-2017 period (lightgreen). It shows clearly that by adding globalreal estate, a portfolio would have had thepotential to achieve either a higher returnor the same level of return at lower risk.Another way to look at this topic is toconsider the effect of adding a givenpercentage of global real estate to a portfolio,say 10%, 20% or 30% (Figure 15). Whatwould have been the impact on a traditionalglobal stocks and global bonds portfolio in thepost-GFC period? Four conclusions are clear:– Adding global real estate, unlisted orlisted, would have enhanced the totalreturn of the portfolio – ranging fromapproximately 20-30 bps per annumat the 10% allocation level for realestate to 60-80 bps at the 30% level.This exercise exhibits some of the benefitsof real estate in a global portfolio, howeverit should be acknowledged that in practicemost investors will begin with a portfoliothat already has a component of domesticreal estate and then consider the additionof global real estate.Figure 14Global indices efficient frontier 2005-17Global portfolio comprised of global equities and bonds exclusivelyGlobal portfolio comprised of global equities and bonds, listed and private real estateRisk (quarterly standard deviation, %)2.02.53.03.54.04.55.05.56.06.51.91.71.51.3Return (quarterly, %)Sources: Invesco Real Estate using data from Macrobond, Barclays and MSCI Global Property Index as of July 2018.Figure 15Diversification: Risk and return profile of different portfolios since the GFC (Q1 2010-Q4 2018, in US )20Traditional equities/bonds portfolioPortfolio with addition of listed real estate (L)Portfolio with addition of unlisted real estate (UL)Portfolio with addition of combination of listed and unlisted real estateRisk (average annual standard deviation, %)7.06.57.58.08.59.0Adding real estate hasproduced higher returns7.57.030% UL20% UL30% L20% L10% ULLower volatility10% LTraditional portfolioSource: Invesco Real Estate using data from MSCI, Bloomberg Barclays and Macrobond as of May 2019.08 Invesco Real EstateConsiderations for investing in global real estateHigher volatility6.56.0Annualized total returns(% per annum)
ConclusionWhile there are a number of potential motivations for investing in globalreal estate, an investor may want to assess various other factors beforemaking an allocation such as the impact of currency, tax, liquidity andpricing, as well as an assessment of internal capabilities.Analyzing global real estate markets and the different ways to investcan be a large task. An investor may need to assess what resourcesand capabilities they have to execute a global real estate allocation.Most investors may choose to participate via listed real estate, separateaccounts, unlisted commingled funds or fund of funds in order to gainaccess to global real estate without the extensive time required to buildout dedicated internal resources, much less the lead time to deploycapital at scale.For investors considering expanding their exposure beyond their homecountry, listed and unlisted global real estate can offer attractive returnsderived from generally stable income streams, while simultaneouslyhaving the potential to lower portfolio volatility. The depth andtransparency of many international markets make cross-borderinvestment increasingly accessible, while historical low correlations toother countries and alternative asset classes makes it a useful tool fordiversification. For many, time in the market, rather than market timingmay be the simpler, better way to achieve the portfolio benefits.09 Invesco Real EstateConsiderations for investing in global real estate
Notes Preqin Investor Outlook: Alternative Assets, H1 2019 report. CBRE Research, Global Investor Intentions Survey 2018.3 Total investable universe market size is estimated based on each regions’ investablestock as defined by latest Cushman & Wakefield Money into Property 2017 report.Regional market capitalisation of the FTSE EPRA/NAREIT Global Real Estate Index isestimated based on the free-float method as of Q1 2019.4 Total investable universe market size is estimated based on each region’s investablestock as defined by latest Cushman & Wakefield Money into Property 2017 report.5 Regional compositions of the MSCI Global Quarterly Property Fund Index areestimated based on fund-level Net Asset Value (NAV) as of Q4 2018. The sum of thepie chart may not add to the total due to rounding.6 Regional market capitalization of the FTSE EPRA/NAREIT Global Real Estate Index isestimated based on the free-float method as of March 2019.7 Real Capital Analytics, as of March 2019.8 “Transparent universe” is estimated based on the JLL Transparency Index 2018Edition. The JLL index was derived based on factors such as investment performance,market fundamentals, listed vehicles, regulatory/legal environment and transactionprocesses in 2018. For this analysis, the transparent universe includes 32 countries,which were categories as either “Highly Transparent” or “Transparent” according toJLL. The size of the investable stock in each country is then estimated based on thelatest Cushman & Wakefield Money into Property 2017 report.9 Annualized averages are generally calculated based on the geometric averages oftotal returns in 2005-2018 or for the longest time period available. For Hong Kong,China and Taiwan, annualized averages were calculated using the longest availabletime periods through 2017, the latest data available at time of publication.10 Shares of total returns are approximate values which exclude residual effects. Bothreturns and standard deviations were derived based on 18 years (2001-2018) ofannual income return and capital growth histories. Global equity performance iscalculated based on the MSCI World Index. Global bond performance is calculatedbased on the Bloomberg Barclays Global Aggregate Index. Global public real estateperformance is calculated based on the FTSE EPRA/NAREIT Global DevelopedIndex. Global private real estate performance is calculated based on the MSCI GlobalProperty Index.11 Correlations generally use the longest available common time period (2007-2018).Korea South Korea.12 MSCI Global Quarterly Property Fund Index (GPFI) was reweighted to 40% NorthAmerica, 30% Europe and 30% Asia Pacific.13 Hypothetical US 100 million investment into the reweighted GPFI not including there-investment of dividends. Reweighted GPFI refers to the MSCI Global QuarterlyProperty Fund Index (GPFI) in local currency being reweighted to 40% NorthAmerica, 30% Europe and 30% Asia Pacific.14 Hodes Weill & Associates, 2018 Institutional Real Estate Allocations Monitor.15 Correlations were calculated using the longest common time period available fromQ1 2008 through Q4 2018.16 The custom index is based on the MSCI Global Quarterly Property Fund Index (GPFI)reweighted to 40% North America, 30% Europe and 30% Asia Pacific. The GPFI isa consultative index of 101 capitalization-weighted, core, open-ended quarterlyvalued direct real estate funds from around the world.17 This index is a market capitalization-weighted index designed to capture large andmid cap publicly traded equity representation across 23 developed markets. Theindex covers approximately 85% of the free float-adjusted market capitalization ofthe public equity markets in each country. The returns are used here to representglobal equity market returns.18 The index is an equity market capitalization-weighted index composed of propertycompany constituents that trade on several global exchanges. The returns are usedhere to represent global real estate investment trust returns (GREITs). GREITS are apublicly liquid equity security whose underlying assets are real estate investments.GREITs are often viewed as the liquid proxy for real estate investing.19 The index is a market capitalization-weighted index that includes Treasury securities,Government agency bonds, mortgage-backed bonds, corporate bonds, US-tradedinvestment grade bonds, and some foreign bonds traded in the US and is used hereto represent global bond market returns.20 Global equity performance is calculated based on the MSCI World Index. Globalbond performance is calculated based on the Bloomberg Barclays Global AggregateIndex. Global private real estate is calculated based on the MSCI IPD Global PropertyFund Index. Global public real estate is calculated based on the FTSE EPRA/NAREITDeveloped Index.1210 Invesco Real EstateConsiderations for investing in global real estate
Investment RisksThe value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors maynot get back the full amount invested. Property and land can be difficult to sell, so investors may not be able to sell such investmentswhen they want to. The value of the property is generally a matter of an independent valuer’s opinion.Important informationThis document is for Professional Clients only in Dubai,Continental Europe, Ireland and the UK, for Qualified Investorsin Switzerland, for Institutional Investors only in the UnitedStates, Australia and Singapore, and for Professional Investorsonly in Hong Kong and in Japan as defined under the FinancialInstruments and Exchange Law of Japan. In Canada, thedocument is intended only for accredited investors as definedunder National Instrument 45-106. It is not intended for andshould not be distributed to, or relied upon by, the public or retailinvestors. Please do no
05Invesco Real Estate Considerations for investing in global real estate Figure 9 Direct real estate total return by country (%, local currency, all property types) Each grey line represents the annual total return series over time for an individual country (32 countries). Source: Invesco Real Estate using data from MSCI and NCREIF as of May 2019.
