Miami employee pension fund divests REIT portfolio

Miami /
Jan.January 25, 2018 05:00 PM

Miami City Hall (Credit: Wikimedia Commons)

The City of Miami General Employees’ & Sanitation Employees’ Retirement Trust (GESE) is divesting from real estate investment trusts following an asset-liability study.

GESE eliminated its target 5 percent real estate investment and will instead increase its target investment in core fixed income by and domestic large-cap core. The trust had a 4 percent allocation in real estate as of September 30, 2017 and a total of $27 million in its REIT portfolio, according to Pensions & Investments. It also dropped its target for domestic small cap equity and international equities.

Nationwide, REITs collectively performed worse than the soaring stock indexes last year. The FTSE NARIET All Equity REITs index rose just 8.7 percent to the S&P 500’s 21.8 percent. The index is down 2.4 percent so far this year. Investors point to expected interest rate increases and the recent federal tax reform as reasons for the poor performance. REITs do not pay income taxes, so do not benefit from the tax reform as much as some other sectors.

The city of Miami trust manages funds for general and sanitation employees of the city and was established in 1985 “to serve permanent employees other than firefighters and police officers.”

[Pension & Investments] — Dennis Lynch 


Related Articles

arrow_forward_ios
Nick Rojo and Jeff Burns (Affiliated, iStock)

Affiliated Development launches $125M workforce housing fund

Affiliated Development launches $125M workforce housing fund
Tom Cabrerizo and 6790-6880 Southwest 80th Street (Google Maps)

Developers score $15M construction loan for Miami townhouse development

Developers score $15M construction loan for Miami townhouse development
Triton Center (iStock)

Questions surround $50M in EB-5 investments tied to former INS building: lawsuit

Questions surround $50M in EB-5 investments tied to former INS building: lawsuit
Michael S. Liebowitz and Russell Galbut (Linkedin)

Russell Galbut and partner launch blank check company, plan to raise $100M

Russell Galbut and partner launch blank check company, plan to raise $100M
Southland Mall, 20505 South Dixie Highway in Cutler Bay with JLL's Tom Hall and Danny Finkle (Google Maps, JLL)

Southland Mall’s troubled $65M CMBS loan for sale

Southland Mall’s troubled $65M CMBS loan for sale
Alan Ojeda and 8894 NW 44 Street in Sunrise (Google Maps)

Rilea Group scores $46M construction loan for Sunrise apartments

Rilea Group scores $46M construction loan for Sunrise apartments
Yard 8 and Wood Partners CEO Joseph Keough (Courtesy of ACRE)

Wood Partners lands $86M refi for Midtown Miami apartments

Wood Partners lands $86M refi for Midtown Miami apartments
Masoud Shojaee and a rendering of Shoma Village 

Shoma Group scores $67M loan for mixed-use Hialeah project

Shoma Group scores $67M loan for mixed-use Hialeah project
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...