Pension funds are having difficulty valuing the real estate assets in their portfolios as pricing has become opaque amid the pandemic. The percentage of public-pension portfolios invested in real estate has grown from 3.8% in 2007 to 6.1% in the first quarter of this year.
Some asset managers are pushing back against a proposal from the Labor Department that could discourage the use of ESG investments in retirement portfolios.
Pacific Life Fund Advisors, which bet on the market recovery in late March, is now dialing back its risk position. Max Gokhman, head of asset allocation, points to a disconnect between the performance of the S&P 500 and the threats facing the broader economy.
The National Multifamily Housing Council's rent payment tracker found that 77.4% of apartment dwellers paid at least some of their rent as of July 6. The tally was down 2.3% from 2019 and was a decline from the 80.8% who made full or partial payments during the prior month.
American Homes 4 Rent, which has about 53,000 suburban houses, is well-positioned as the pandemic and various economic factors make these properties particularly appealing. As part of its effort to expand its portfolio, the company is building thousands of homes intended for the rental market.
The pandemic has taken a toll on renters, with Aspen Institute data showing that some 23 million people could be at risk of eviction by the end of September. In contrast, the purchase and sales side of the housing market has shown momentum recently, according to Realogy CEO Ryan Schneider.
Strong demand has sent lumber and plywood prices soaring, with lumber futures up more than 85% since April 1, leading share price gains for such companies as Weyerhaeuser Co. Pent-up demand from home builders and a surge in do-it-yourself projects have helped drive the gains.
Sur La Table is seeking bankruptcy protection and plans to close 56 of its 121 stores. Other stores will be sold to affiliates of Fortress Investment Group.
Data from Placer.ai suggests a positive future for New York City's retail sector, with numbers from the middle of June indicating a "turning point" for some apparel retailers. "There are many positive signs that indicate a rebound is en route and 'normalcy' could be within reach," the analytics firm said.
The number of Manhattan apartments available for rent climbed above 10,000 last month, up 85% on a year-over-year basis, a report from Miller Samuel and Douglas Elliman found. The vacancy rate hit a record 3.67%, and average rental prices were down 8% for the month.
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