Sustainable Investing

As environmental metrics move beyond branding toward verifiable benchmarks, investors must look to concrete metrics and regulatory certainty to capture value.

New research from the Multifamily Impact Council and NYU finds multifamily resident services, engagement and sustainability initiatives positively influence NOI, writes Bob Simpson, founder and CEO of the Multifamily Impact Council.

As the real assets industry grows, investors’ sustainability strategies and priorities are diverging along multiple lines.

Climate risk modeling for retail assets focuses on the building. What it misses is the income, writes Sophie Taysom, founder of London-based climate and sustainability advisory firm Keyah, and Dean Magee, chief data scientist at Melbourne-based data analytics firm Geografia.

The energy-focused investment firm has raised $370m for its first real estate fund and plans to get its properties to operational net zero within three years of purchase.

The new reality of value creation and asset management reflects a broader shift away from passive ownership and toward hands-on management as the main driver of returns.

Real estate managers accept that NOI growth is critical to investment performance, and now innovators in the sector are capturing a greater share of the operational upside.

As fundraising remains muted across the value-add strategy, managers and investors emphasize execution, pricing and selectivity as key performance drivers globally.

Developing a disciplined ESG approach is emerging as a key competitive advantage in managing properties and unlocking real value.

As liquidity tightens and pockets of distress emerge, managers are turning to sharper underwriting, disciplined capex and tighter operational control to drive returns, says Arrow Global’s Jay Patel.