Andrea Alms Video:  Money In Motion 71 - Real Estate Property Sector Performance

TRANSCRIPT Hello, my name is Andrea Alms. I am technology investor and financial manager and this is your money in motion.  On a global basis, data centers, industrial and self-storage have been the strongest performing sectors in 2023. Please note this is a midyear report as of June 30th as shown in the chart, the data center sector leads by a whopping return of 19.5%, followed by timber at 11.2% and self-storage at 8.4%. Office and its infrastructures have lagged the most with respective returns of -12, -10.7. And the U.S. real estate is exerting the greatest downward pressure on these sectors. This chart above reflects an important secular trend that has taken over since the pandemic. People are spending less time in the office, which has resulted in concerns about the current and future value of office properties. While the need for logistic capacities, datacenter access and cellular communications become more important since December 31st, 2019, the new economy property sectors, that is data centers, industrial and cell towers are outperforming all other sectors with a cumulative total return of 16.2%. Regionally, North America is leading on a year to date basis through June 30th on a total return of 5.2%. While Develop Asia is down -4.6% and develop Europe is down -5.4%. In 2022, the regions were all down -24.8%, -11 and -40% respectively. Comparing sector performances across regions present some similarities and some key differences. Data centers is the strongest performing sector in North America and Asia. Respective returns are 19.4% at 23.9%. Note that there is no data center sectors in Europe. Globally, the office sector is the weakest and lags with a total return of -41.1% since 2019. Through the extent of the underperformance is driven by U.S. returns. For example, in 2023, the sector is down 15.5%. North America, while posting returns of -2.6 in Europe and -9.6 in Asia. Thank you. This is your money, your money, in motion.