CNSREIT-AR-2024 Final - Flipbook - Page 4
11.6%
Total return for
Class I since inception
(1/11/2024)(1)
Dear CNSREIT stockholder,
When we launched CNSREIT one year ago, we believed we were
entering an attractive point in the real estate cycle and that we would
be able to invest fresh capital at the right time, with the opportunity for
strong returns and attractive current yields.
We believe that conviction is paying o昀昀.
The Cohen & Steers Income Opportunities REIT (Class I share)
delivered peer-group leading total returns of 11.6% from inception on
January 11, 2024, through December 31, 2024(1). Over the past year, we
identi昀椀ed 昀椀ve properties for acquisition, consistent with our strategy of
targeting undervalued sectors in growth markets.
Notably, commercial real estate prices bottomed six months after our
launch. We’ve long argued that listed REITs are leading indicators to
private in both downturns and recoveries, and this cycle has been no
exception. We expected private real estate to lag listed REITs by 12 to
18 months. Indeed, listed REITs bottomed in October 2023, and private
real estate hit bottom one year later, on average across sectors.
Private real estate returns, as measured by the NCREIF ODCE index(2),
were negative for seven straight quarters, dating back to the end of
2022. Modest positive returns in the third quarter of 2024, which we
believed represented a trough, were then followed by positive
quarterly returns in the fourth quarter, where both appreciation and
total returns turned positive.
The insights gained from Cohen & Steers’ position as the world’s largest
active manager of listed real estate bolstered our conviction that
opportunities in private markets were emerging. In fact, while private
real estate continued to reprice in 2024, we determined there was one
property sector that bottomed before the others: open-air, necessitydriven shopping centers.
(1) Returns shown reflect the percent change in the NAV per share from the beginning of the applicable period, plus the amount of any distribution per share declared in the period. Return information is not a
measure used under generally accepted accounting principles. All returns shown assume reinvestment of distributions pursuant to CNSREIT’s distribution reinvestment plan, are derived from unaudited financial
information and are net of all CNSREIT expenses, including general and administrative expenses, management fees, performance participation allocation, and share class specific fees, but exclude the impact of early
repurchase deductions on the repurchase of shares that have been outstanding for less than one year. Returns for less than one year are not annualized. The returns have been prepared using unaudited data and
valuations of the underlying investments in CNSREIT’s portfolio, which are estimates of fair value and form the basis for CNSREIT’s NAV. Valuations based upon unaudited reports from the underlying investments
may be subject to later adjustments, may not correspond to realized value and may not accurately reflect the price at which assets could be liquidated. (2) NCREIF 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 NCREIF data has material differences from an investment in CNSREIT, including those
related to investment objectives, risks, fees and expenses, liquidity and tax treatment. The NCREIF is not a measure of non-listed REIT performance. It is not possible to invest directly into an index.
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COHEN & STEERS INCOME OPPORTUNITIES REIT
