When evaluating our portfolios, many investors focus on the allocated percentage of real estate investments through REITs, which typically represents around 3%. However, this approach might be overlooking another significant form of real estate exposure - physical properties directly owned by publicly traded companies like Amazon. These firms often hold substantial real estate assets such as land, buildings, and infrastructure necessary for their operations.
For instance, Amazon reports approximately $400 billion worth of real estate out of its total assets of $600 billion, with additional plans for $29 billion in new constructions. This observation raises questions about the true extent of our real estate exposure when investing in these corporations beyond traditional allocations via REITs.
This raises two questions:
How can we accurately estimate the actual proportion of real estate exposure when accounting for both REITs and direct ownership within public company balance sheets?
Considering this broader perspective, would you argue that relying solely on designated "real estate" categories in our portfolios could lead to underestimating overall exposure or being potentially misguided in diversification efforts?
For instance, Amazon reports approximately $400 billion worth of real estate out of its total assets of $600 billion, with additional plans for $29 billion in new constructions. This observation raises questions about the true extent of our real estate exposure when investing in these corporations beyond traditional allocations via REITs.
This raises two questions:
How can we accurately estimate the actual proportion of real estate exposure when accounting for both REITs and direct ownership within public company balance sheets?
Considering this broader perspective, would you argue that relying solely on designated "real estate" categories in our portfolios could lead to underestimating overall exposure or being potentially misguided in diversification efforts?
Statistics: Posted by Harmanic — Sat Apr 20, 2024 6:28 am — Replies 0 — Views 28