Real Estate Debt is one of the cornerstones of Alliancebernstein’s overall strategy and globally integrated approach to real estate investing. This debt strategy provides institutional clients with an alternative source of income and a more active management approach to deal with real estate market cycles.
Objective
seeks to achieve attractive and consistent current income levels, along with enhanced portfolio diversification and low volatility. The team is focused on investing in a diverse portfolio of floating-rate mortgage loans that produce attractive cash flows with relatively low risk, backed by quality assets and secured by hard assets.
Investment Strategy
team takes a differentiated approach, which is designed to deliver sustainable and current income with low volatility.
- Investment in Floating-Rate Loans: Alliancebernstein only invests in floating-rate loans for their portfolio which have either a five or seven-year maturity rate, allowing them to benefit from rising interest rates and resist the effect of sporadic market corrections.
- Research Driven Investment Strategy: The team conducts rigorous fundamental bottom-up research to identify loans and underlying properties with the potential to generate attractive returns. They also analyze macroeconomic factors to inform their investing decisions, with a focus on diversified income-producing assets across major metropolitan areas and with diverse tenant profiles.
- Risk Management: The team employs a disciplined and risk-conscious approach to loan underwriting with stringent loan and tenant requirements, which helps to ensure high-quality portfolios and successful investments. The team also regularly monitors and assesses their investments, while actively managing their portfolio to ensure that they remain on track to meet their return objectives.
Advantages
Real Estate Debt investors are able to benefit from attractive and consistent current income, attractive risk-adjusted returns, a low degree of volatility, and enhanced portfolio diversification. The team’s research-driven approach and disciplined risk management also helps to ensure successful investments.
The team has a deep knowledge of the sector, which allows them to maximize return potential for their clients. The team has a reputation for providing innovative financing solutions and specializes in a wide range of loan products including bridge loans, permanent loans, distressed debt, and mezzanine loans.
is a reliable and attractive option for institutional investors looking to diversify their long-term portfolios. The team’s broad knowledge and experience allow them to provide attractive returns while minimizing risk.