Inflation-Resistant Income

Real Estate

The Real Estate portfolio includes a mix of fully and jointly owned properties, including residential, industrial, retail, and office properties across the U.S. and abroad. Designed to deliver steady, inflation-resistant income and long-term value, Real Estate helps diversify the Fund through assets that behave differently from traditional stocks and bonds.

At a Glance

Key Portfolio Figures

11%

FY26 Target Allocation

$9.3B

as of June 30, 2025

6%-8%

Target Returns

Real Estate Objectives

Performance

The portfolio benchmark is the NCREIF Property Index (NPI), a broad U.S. real estate index that includes both traditional and alternative property investments.

Performance reports for the portfolio can be found in the monthly performance reports and in board meeting packets.

Measuring Results and Progress

Managers and Partners

The Real Estate team partners with external managers to leverage specialized expertise offered by our partners to identify unique opportunities that benefit the portfolio.

Equity Separate Accounts

  • CBRE Global Investors EMEA AIFM
  • CBRE Investment Management
  • CS Capital Management
  • Heitman Capital Management
  • L&B Realty Advisors
  • LaSalle Investment Management
  • Lincoln Property Company
  • Sentinel Realty Advisors Corporation
  • AEW Capital Management

Debt Separate Accounts & Funds

  • Crow Holdings Capital
  • Heitman Capital Management
  • Kayne Anderson
  • Mesa West Capital
  • Canyon Partners

REIT Separate Accounts

  • AEW Capital Management

Equity Funds & Coinvestments

  • Brookfield Asset Management
  • CBRE Investment Management
  • Clarion Partners
  • Fairfield Residential Holdings
  • H.I.G. Global Capital Partners
  • Harbert Management Corporation
  • Realterm Logistics
  • TPG Angelo Gordon
  • Lincoln Property Company

Strategy & Focus Area

Real Estate Mandate

To achieve diversification and return objectives, the real estate investment strategy targets a mix of investment styles, ownership structures, property life cycles and property types. The Portfolio is invested within the guidelines of the APFC Investment Policy with a focus on steady cash flow and preservation of capital.

 

INVESTMENT POLICY