REAL ESTATE
Real Estate is an important component of the APFC’s Portfolio. The Alaska Permanent Fund Corporation has partial or complete ownership of residential, retail, industrial, and office buildings in the United States and abroad. Every time APFC collects rent on these properties or sells one at a profit, the money earned flows to the Permanent Fund.
KEY PORTFOLIO FIGURES
$9.3 B
as of June 30, 2024
69
properties
11%
FY25 TARGET ASSET ALLOCATION
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.
APFC maintains a long-term horizon and is a conservatively run institutional real estate portfolio consistent with the Fund’s statutory authority. The Portfolio is invested within the guidelines of the APFC Investment Policy, Real Estate Strategic Plan and Real Estate Tactical Plan. The Portfolio has long had a Core focus where steady cash flow and preservation of capital are the pronounced elements of the investment, however the current Strategic Plan enhances the composition by incorporating more non-core investments in order to achieve the stated return objective of CPI + 4.0%.
The Portfolio is managed by a team of 6 internal staff and 7 external Advisors – Sentinel, L&B Realty, LaSalle UK, CBRE Europe, CS Capital Management, Heitman and Lincoln.
PROPERTIES
PERFORMANCE
The benchmark for the Portfolio 85% NCREIF Property Benchmark (Lagged) and 15% MSCI US REIT Index.
Performance reports for the portfolio can be found in the monthly performance reports and in the board meeting packets.