Commercial real estate has the ability to provide long-term returns through rental income, rental income growth and capital appreciation.
Real estate returns have a low correlation to broad equity markets and offer diversification benefits to existing equity and bond holdings.
Rental income makes up the majority of long-term commercial real estate returns. Real estate typically offers a stable income return through the payment of rent over the length of the lease. An asset’s rental income may also provide inflation protection over the medium term.
As a physical asset, real estate may act as a store of value. Compared to a bond or equity, a tenant default allows the landlord to replace them with a new tenant while value remains stored in the land or building. A bond or equity default may result in the entire loss of capital and income.
There is the potential for income growth and capital appreciation through favourable demand/supply dynamics and active management to generate value.
As a physical asset, real estate managers own and manage properties with the potential to add value through focused active asset management.
Real estate yields typically offer an attractive risk premium to long-term government bonds.
Please remember that the value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.
This marketing material is for professional investors or advisers only. This site is not suitable for retail clients.
Most of the real estate funds referred to in these pages are unauthorised collective investment schemes as defined in the Financial Services and Markets Act 2000. Promotion of these funds is restricted and access to full information about these funds is only available to those exempt from the restriction.
For your security, communications may be recorded or monitored.
Issued by Schroder Real Estate Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. Registered No: 1188240 England. Authorised and regulated by the Financial Conduct Authority.
Please note this website is for professional investors and their advisers and should not be relied upon by retail clients. If you are a retail client, our UK Authorised Funds, Schroder Global Property Securities Fund, Schroder International Selection Fund Global Property Securities and Schroder Global Property Income Maximiser can be accessed on Schroders UK retail investor site.
The purpose of this website is to provide general information about Schroder Real Estate. Reliance should not be placed on the views and information on this site when taking investment and/or strategic decisions.
Nothing in this site should be construed as being personal financial advice. Should you have any queries about your application or the suitability of any of the investments included on this website for your personal circumstances, you should contact your Financial Adviser.
With the exception of Schroder Global Real Estate Securities Fund, Schroder International Selection Fund Global Property Securities and Schroder Global Property Income Maximiser, and Schroder UK Real Estate Fund, all of the property funds referred to in these pages ("Funds") are collective investment schemes within the meaning of Section 235 of the Financial Services and Markets Act 2000 ("FSMA").
The Funds are not authorised unit trust schemes, open ended investment companies (OEIC's) or recognised schemes within the meaning of the FSMA and therefore constitute unregulated collective investment schemes. As unregulated collective investment schemes, the distribution and promotion of units is restricted, for the purposes of Sections 21 and 238 of the FSMA, to persons who are themselves authorised under the FSMA or who otherwise fall within the categories or exceptions made under Sections 21 and 238.
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