Five reasons for real estate.
Reason #1: Income
Real estate has traditionally offered investors a higher level of income compared to other asset classes.1
Reason #2: Growth Potential
Reason #3: Volatility Management
Historically, real estate has offered investors both strong total return and lower volatility than many other asset classes. 1, 3
Reason #4: Diversification
Commercial real estate may provide portfolio diversification for enhanced market resilience. 4
Reason #5: Inflation protection potential
Real estate has often been an inflation hedge. 4
1 Source: Commercial property is represented by the income component of the NFI-ODCE Index, US equities are represented by the dividend yield of the S&P 500 Index, U.S. investment grade bonds are represented by the yield to worst of the Bloomberg Barclays U.S. Aggregate Bond Index, and U.S. T-Bills are represented by 3 month U.S. T-Bills.
2 In the Asset Class Returns & Volatility, 1998-2018 chart, volatility is represented by standard deviation. Standard Deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation and volatility.
3 While commercial real estate may protect against volatility, it does not have the liquidity of a listed security. Nuveen Global Cities REIT, Inc. is a non-listed REIT, which offers limited liquidity as compared to other products, such as publicly listed REITs. Investors in Nuveen Global Cities REIT, Inc. are not receiving publicly listed shares. Please note real estate investments have different risk and return expectations from other asset classes, due to differences in liquidity, expenses, tax and other features. Real estate investments are not substitutes for other asset classes and should be considered in light of diversification objectives.
4 Source: NCREIF ODCE Total Return Index; Bloomberg Barclays U.S. Agg Total Returns; S&P 500 Index Total Return 2018. Real estate net operating income is from the NFI-ODCE and US Inflation is provided by Moody’s Analytics, 2018.
Past performance is not indicative of future results. NFI-ODCE Index data reflects the returns of a blended portfolio of institutional-quality real estate and does not reflect the use of leverage or the impact of management and advisory fees. The NFI-ODCE Index has material differences from an investment in Nuveen Global Cities REIT, Inc., including those related to investment objectives, risks, fees and expenses, liquidity and tax treatment. The NFI-ODCE Index is not a measure of non-listed REIT performance. It is not possible to invest directly into an index.
Asset Class Related Risks: There are risks inherent in any investment, including the possible loss of principal. Different types of asset investments have different types of risks, which may provide higher returns but also greater volatility. In general, equity securities tend to be more volatile than fixed income or hybrid securities. Foreign investments may involve exposure to additional risks such as currency fluctuation and political and economic instability. The value of, and income generated by, debt securities will decrease or increase based on changes in market interest rates. High yield corporate bonds are subject to liquidity risks and heightened credit risk. Government bonds are guaranteed as to the timely payment of principal and interest.
NUVEEN GLOBAL CITIES REIT
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