Bill Hughes, managing director, liquid strategies at DigitalBridge Investment Management, joined the latest episode of the REIT Report podcast. He discussed opportunities in listed real estate and REITs for institutional investors, the impact of liquidity on market dynamics, the importance of strategic portfolio construction in relation to interest rates, and more.
Hughes noted that now is an “interesting time” for institutional investors to be thinking about their allocation to public real estate, where a number of higher quality assets are trading at material discounts to private market values. He described the public markets as having “a decent number of mispriced and interesting” investments available right now.
During the interview he also noted that for DigitalBridge, focusing capital into “idiosyncratic stories within a fairly rich and diverse opportunity set that is the REIT market” provides its investors with exposure to investments that are significantly different from what they can find in the private markets or in a market cap weighted index.
Hughes also shared insights into the role DigitalBridge played in shaping a top 10 global sovereign wealth fund’s listed real estate investment strategy. The portfolio, he said, leveraged sector expertise, focused on catalyst-driven opportunities, took advantage of inefficiencies in the REIT market, and “was well situated to outperform over time.”
Meanwhile, Hughes discussed the benefits of a sub-sector agnostic approach, the critical role of active management in identifying mispriced opportunities, current trends and the future outlook for REITs in the context of supply-demand dynamics, and more.
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