The real estate market in the United States is one of the most developed investment channels since the 1960s, and as of today as many as 165 such funds are traded in the United States with a combined market cap of $ 250 million. The sophisticated real estate market is pushing the funds to operate in a competitive and challenging environment. We will review some examples of leading real estate funds in the United States so that you can get an idea of the variety of investment opportunities and the types of assets available to these funds. Please note that this is not a recommendation to invest in these funds and that if you wish to invest in one fund or another, we strongly recommend that you carry out a comprehensive due diligence examination as this is an investment in companies with complex and variable business models that affect the expected return, as well as tax considerations and risk.
Among the main characteristics of these funds can be seen:
- Specialization in the specific real estate sector
- A mix of ownership and management of real estate assets in the relevant market segment
- Extensive activity both in the United States and in other countries
- Leverage, credit and capital levels in variable mix
- Activity characterized by long-term investments and cash flows over time
Here is a partial list of the leading real estate funds in the US market.
The American Tower Fund (AMT) – this fund has a market cap of $ 61.8 billion, and as may be understood from its name, it specializes in the ownership and management of antennas and communication sites. Its working model is usually leasing land, building an antenna and renting it to cellular companies and other communications providers.
The Simon Property Group (SPG) has a market cap of $ 51.7 billion and is currently the center of attention of the US market due to difficulties in the retail market. This company specializes in operating and owning shopping centers and hotels. The fierce competition from online purchases presents worrisome signs regarding the income and value of physical shopping centers in the United States.
Public Storage Fund (PSA) – with a market cap of $ 38 billion it specializes in storage centers and storage units. The company owns more than 2,700 storage sites in the United States and Europe. The company has a very stable balance sheet and a product that enjoys popularity and a stable revenue flow.
Prologis Fund (PLD) – a $ 34.1 billion fund specializing in the ownership and operation of logistic real estate, which includes distribution centers, warehouses and other facilities related to the distribution of goods and commodities. The logistics of Internet companies grow faster than the retail chains, which contributes to this fund’s success.
Equity Equinix (EQIX) – a fund with a market cap of $ 32.8 billion. This fund is in fact the world’s largest operator of information and information centers with more than 9800 companies using its services. It provides integrated service that includes buildings, energy security and refrigeration systems. Customers use the company’s services for their information systems and provide computer equipment.
Weyerhaeuser Fund (NYSE: WE) – a fund with a market cap of $27.9 billion. This fund has an interesting specialization in management and ownership of woodlands – designated for the wood industry. The company owns forest areas that it also leases to its customers. In addition to the land business, the company has various services related to the marketing and sale of various types of wood – mainly to the residential construction market.
Equity Residential (EQR) and AvalonBay Communities (AVB) – these are two similar funds of $ 23.7 million and $ 23.3 billion respectively, which concentrate on the ownership of rental residential real estate properties. But they operate in a market segment that shows signs of growth in light of demographic changes in the United States.
Health Care REIT and Ventas – similar funds of 25.44 billion and 24.4 billion, respectively – specializing in the ownership and management of assets related to the health sector such as hospitals, nursing homes, clinics and more. The difference between the companies is their business focus, with Ventas focusing more on nursing homes and nursing services.