Principal’s High Yield Real Estate Credit seeks to provide current income, while aiming to preserve capital and mitigate downside risk.
Depth of experience
We have more than 60 years’ experience in private debt investing
Vertically integrated platform with expertise in-house
We have a fully integrated debt platform with experience across originations, servicing, specialist servicing and portfolio management. We are able to handle every aspect of the loan life cycle in-house allowing for greater control of loan outcomes.
Scale & resources
Our private debt team has over 100 investment professionals, including over 40 originators who help to generate broad deal flow and perform deep diligence to identify high-quality investments for client portfolios.
The $4.8 trillion U.S. commercial real estate (CRE) mortgage market
With lower volatility and greater stability than many asset classes, real estate credit can potentially offer investors a way to diversify and reduce risk in their portfolios.
High returns have followed past market resets, giving investors the potential to achieve attractive vintage performance by investing during periods of market dislocation.
Real estate credit has historically delivered attractive returns, offering investors the chance for a more consistent income with a proven track record of outperformance compared to public corporate bonds.
High risk-free rates and rest valuations potentially offer higher risk-adjusted returns on newly originated CRE loans. Investors also benefit from the real estate collateral, helping to shield against potential losses.
We believe bottom-up stock selection is the most reliable and repeatable source of consistent performance. Through focused fundamental research and disciplined risk management, we strive to take advantage of persistent behavioral biases and impediments to capital flows, which often create market inefficiencies and opportunities.
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Footnotes
Past performance does not guarantee future results.
Investing involves risk, including possible loss of principal.
Real estate investment options are subject to risks associated with credit, liquidity, interest rate fluctuation, adverse general and local economic conditions, and decreases in real estate values and occupancy rates.
Investments in private debt, including leveraged loans, middle market loans, and mezzanine debt, second liens, are subject to various risk factors, including credit risk, liquidity risk and interest rate risk. Commercial mortgage is subject to the basic risk of lending and direct ownership of commercial real estate mortgages.
Principal Real Estate is a trade name of Principal Real Estate Investors, LLC, an affiliate of Principal Global Investors.