Bernhard Krieg, CFA, Managing Director and Portfolio Manager, Brookfield’s Public Securities Group – Real Estate, and Alice Olive, Senior Vice President, Brookfield Oaktree Wealth Solutions, discuss current opportunities in real estate and the changes in the real estate market as the vaccine roll-out and re-openings continue.
Economic recovery in the United States has already been observed, following the strong vaccine roll-out. Restaurant demand is rebounding, senior housing is recovering, and real estate equities are growing. Other countries are about two to three months behind the United States in their vaccine rollouts, which means that the recovery that they’ll experience is delayed compared to that of the U.S. Social distancing has also created a divergence of values post-pandemic vs. pre-pandemic.
As of May 2021, monthly average revenue for hotels with business-focused destinations are down 66% compared to 2019, whereas hotels with leisure-focused destinations are down only 3%. With the variation in magnitude and speed of re-openings across different regions, the pace of general recovery and expansion among property types and regions hinges on the vaccination levels of that region.
Investors can leverage this multi-paced re-opening to use a concentrated and active approach to listed real estate that adjusts as vaccination levels, and other information pertinent to post-Covid re-openings, change.
Brookfield is one of the world’s largest investors in real estate, with a global portfolio including office, retail, multifamily, logistics, hospitality, and student housing assets across five continents.
To learn more, register and watch Brookfield’s webcast: Real Estate Experts Discuss Opportunities Amid Divergent Re-opening.
As global economic recovery nears, the variation between re-openings from region to region will have a significant impact on the landscape of real-estate investment.
This in-depth discussion includes:
• The connection between regional recoveries and the pace of vaccine rollouts
• The outlook for global listed real estate broadly
• The real estate regions and sectors in our view that are currently offering the most compelling short-term and long-term opportunities
• The benefits of an active, concentrated, fundamental-research-based approach to listed real estate Register Now