invesco real estate house view global h2 · pdf fileinvesco real estate house view global...

Invesco Real Estate House ViewGlobal Market Outlook

H2 2016

This document is for Professional Clients only in Dubai, Continental Europe, Ireland and the UK, for Qualified Investors in Switzerland, for Institutional Investors only in the United States, Australia and Singapore, and for Professional Investors only in Hong Kong and in Japan as defined under the Financial Instruments and Exchange Law of Japan. In Canada, the document is intended only for accredited investors as defined under National Instrument 45–106. It is not intended for and should not be distributed to, or relied upon by, the public or retail investors. Please do not redistribute this document.

Invesco Real Estate Global Research Team

Global

Timothy BellmanHead of Global Research+1 972 715 [email protected]

Ada ChenAnalyst — Global Research+1 972 707 [email protected]

Katherine Seamans, Ph.D.Project Coordinator – Global Research+1 972 715 [email protected]

Asia Pacific Europe North America

Thomas AuSenior Director — Research,Asia Pacific+852 3128 [email protected]

Kim PolitzerSenior Director — Research,Europe+44 207 543 [email protected]

Mike Sobolik, CFA®, CRE Managing Director — Research, North America+1 972 715 [email protected]

Jonathan HsuAssociate Director – Research,Asia Pacific+852 3128 [email protected]

Christian EderAssociate Director — Research, Europe+49 89 20 60 61 [email protected]

Nicholas Buss, Ph.D. Senior Director — Research,North America+1 972 715 [email protected]

Jerry SongVice President — Research,Asia Pacific+81 3 6447 [email protected]

Matthew HallAssociate Director — Research,Europe+44 207 543 [email protected]

Erik GillilandDirector — Research,North America+1 972 715 [email protected]

Jade TanAnalyst — Research,Asia Pacific+86 10 6655 [email protected]

Guy-Young LaméAssociate Director — Research,Europe+33 1 56 62 43 [email protected]

Parmesh IyerAnalyst — Research, North America+1 972 707 [email protected]

Lauren van AanholtAnalyst – Research, Asia Pacific+61 2 9006 [email protected]

Julia MaurerAssociate — Research,Europe+49 89 20 60 61 [email protected]

Shane SquiresAnalyst — Research,North America+1 972 715 [email protected]

Joyce GalvanAssociate — Research,North America+1 972 715 [email protected]

(Cover image: City views of Los Angeles, USA; Seoul, Korea; and London, United Kingdom)

Table of contents

01 Executive summary

03 Economic and financial outlook

05 Global real estate market outlook

09 Asia Pacific – real estate

13 Europe – real estate

17 United States – real estate

21 Global investment strategy considerations

22 Global listed real estate investment strategy

23 Global unlisted real estate investment strategy

1 Global Market Outlook, H2 2016

Executive summary

Around the world, real estate fundamentals appear generally sound, although demand is moderating and supply increasing in some markets. Presently three themes dominate real estate investor concerns: current prices, future performance and predictability.

Pricing, performance and predictability are three of the global themes Invesco Real Estate (IRE) has chosen to address in our H2 2016 House View. For some time since the Global Financial Crisis (GFC), real estate fundamentals have been sound or strengthening in much of the world. Investors have been drawn to real assets in general and to real estate in particular due to the comparative attractiveness of their income returns and the prospects for growth. A recent heightening of capital market, political and geopolitical risk levels has resulted in a less certain outlook for investment assets broadly, including real estate. This may reinforce the attractiveness of the relatively secure income return from real assets. The IRE H2 2016 House View is summarized at a high level in Figure 1 and explained in more detail in the sections that follow. IRE believes:

• The income return from real assets should continue to attract investors to listed and unlisted real estate and infrastructure in the period ahead providing support to existing prices.

• Real estate market fundamentals should continue to remain broadly sound, with little supply pressure, thereby helping to underpin the future performance of listed and unlisted real estate.

• Portfolio diversification remains a strong reason to consider real estate globally, and for unlisted real estate, heightened uncertainty at present suggests to us neutral tactical regional allocations within the asset class.

In addition, we have initiated greater coverage of specialty sectors that may expand the traditional opportunity set for listed and unlisted investors. We have chosen to focus initially on those which we believe may have deep demand, an income return at least as high as the traditional sectors and liquidity throughout the cycle (e.g., self-storage and seniors housing in the United States (US) or student housing in Germany).

Figure 1 — Invesco Real Estate H2 2016 House View summaryCurrent pricing, potential future performance and heightened uncertainty are important global themes at present

Global:

— Weak global economic growth masks considerable variations in national momentum.

— Diversification continues to be a strong reason to consider listed and unlisted global real estate.

— Some investors are considering specialty sectors for additional “core-like” real estate opportunities.

Asia Pacific:

— Cities such as Sydney, Melbourne and Seoul may outperform in 2017-19.

— Performance continues to be driven by yield/cap rate compression and mild income growth.

— We intend to focus on strong assets in strong sub-markets given heightened uncertainty.

Europe:

— Real estate fundamentals appear to be improving in much of Continental Europe.

— Yields/cap rates may stay even lower for even longer due to economic uncertainty post-Brexit.

— We believe some investors may be drawn to the relatively high yields/cap rates in the UK.

United States:

— Despite converging fundamentals, property prices have been diverging across quality tiers.

— Opportunities whose demand drivers are not so cycle-reliant could provide income stability.

— We intend to focus on real estate with enduring physical and location qualities.

Note: There is no guarantee strategies are currently pursued or will be pursued by Invesco, nor a recommendation to pursue the strategies. This does not constitute investment advice.Source: Invesco Real Estate as of October 2016

The income return from real assets should continue to attract investors to listed and unlisted real estate and infrastructure

2 Invesco Real Estate House View

Figure 2 — Spreads between real estate and bond yieldsSpreads remain elevated above long-term averages, especially in Europe in Q2 2016

Yield/cap rate spreads to 10-year government bond yields (%)

Q2 2016 Long-term avg. Europe +/-1 standard deviation

Asia Pacific +/-1 standard deviation

North America +/-1 standard deviation

Retail Industrial Office Apartment

Mad

rid

Paris

(CBD

)

Hon

g Ko

ng

Lond

on (

WE)

Sydn

ey

New

Yor

k

San

Fran

cisc

o

Barc

elon

a

Paris

(Id

F)

Stoc

khol

m

Shan

ghai

Mel

bour

ne

Hou

ston

Los

Ang

eles

Lond

on (C

ity)

Mad

rid

Mel

bour

ne

Mun

ich

Paris

(CBD

)

San

Jose

Toky

o5

Seou

l

Shan

ghai

Seat

tle

Bost

on

Toky

o

Den

ver

Seat

tle

San

Fran

cisc

o

Los

Ang

eles

Sing

apor

e-1

0

1

2

3

4

5

6

7%

Note: Long-term average covers the period from Q3 1999-Q2 2016. For San Francisco apartment, data is available only for 53 quarters. Source: Invesco Real Estate based on data from Moody’s, NCREIF and MSCI IPD as of September 2016For illustrative purposes only. Based on current market conditions, subject to change.

Commercial real estate fundamentals remain robust in the United States, and are strengthening in Australia, much of Continental Europe and a number of other countries.

Prices. Real estate capital markets moderated a little in H1 2016 as transaction volume slowed, perhaps due more to a reduction in suitable property for sale than any decrease in investor demand. Prices appear to be high on many traditional metrics but the main exception is the spread of real estate yields/cap rates over local 10-year government bond yields.

In many markets, yields/cap rates are more than one standard deviation above the long-term average spread. This is particularly noteworthy in Europe and parts of Asia Pacific (Figure 2). This gives some comfort that, relative to other asset classes at least, real estate prices remain attractive. It also suggests that in a macro-environment of modest inflation and low interest rates, there is little reason to anticipate an imminent or sharp upward movement in real estate yields/cap rates. Indeed in much of the world, yields/cap rates seem at least as likely to remain stable or even to fall further first.

Performance. With the absolute levels of yields/cap rates at or close to record low levels in many markets, the contribution of income to future total returns is necessarily less. Unless counteracted by stronger growth, this may mean that future total returns will be lower.

In many ways, the outlook for future performance depends on the potential for growth in real estate net operating income. The outlook for market fundamentals, while slowing, gives some reassurance. Commercial real estate fundamentals remain robust in the United States and are strengthening in Australia, much of Continental Europe and a number of other countries. Demand has softened recently in some developed markets, but supply remains broadly in line with demand and rents continue to trend upwards.

Predictability. The future is inherently uncertain, arguably more now than in the recent past due to newly elevated levels of political and geopolitical risk.

The level of economic policy uncertainty is at the highest level since the GFC in the United States due to the unusual course its presidential election appears to be taking. It is also high in Europe due to the United Kingdom’s vote to leave the European Union. In Asia Pacific, uncertainty lingers over the next stage for Abenomics in Japan or China’s political transition in 2017. This level of uncertainty has implications for real estate markets and for investment strategy.


Economic and financial outlook

The global economic outlook has moderated over the last six months. Due to elevated political and geopolitical risk, the outlook has also become less certain. This has implications for real estate investment strategy.

The global economy is flirting with recession, which is generally defined as growth below 3%. Oxford Economics estimates 2.9% global economic growth for 2016 and forecasts growth of 3.4% in 2017 (largely because several major emerging markets are in recession or a slowdown). Hence the long drawn-out bumpy recovery following the GFC appears set to continue, but only just (Figure 4). However, global average economic growth masks considerable national and regional variations in growth and momentum:

• The enduring strength of the US economic outlook continues to stand out. • Due to Brexit, there is now considerable uncertainty on the outlook for the UK. • The outlook in Continental Europe has been upgraded notably, at least in the short term. • The outlook in Japan has been downgraded further.

Predictability. In recent House View publications, we have focused on the influence of elevated “capital market risk” on the outlook and appropriate investment strategies. In H2 2016, it has been joined by two other major risks across all regions of the world:

• Geopolitical risk (e.g., rising nationalism, the South China Sea, Middle East, Russia, etc.) • Political risk (e.g., rising populism, Brexit, the US election, Chinese leadership transitions, etc.)

Figure 3 is a probability/impact risk matrix. This framework helps us structure our thinking about risks to the base case economic outlook over the next 12 months (the base case itself is not represented). The classification combines a global and local perspective. Where a risk has a high impact in one country only, it is likely to be classified as “low-impact.” A risk that has a more moderate impact in many countries might be classified as “high-impact.” Brexit is an example. An orderly Brexit may be a high-probability event but would have a low positive impact because the effect would primarily be felt in the UK. A disorderly Brexit is a medium-likelihood negative event that would have medium impact on a wider range of countries.

From a global strategy perspective, one looks closely at high-probability and/or high-impact risks. Our main emphasis is on monitoring these risks and making sensible decisions to mitigate them. For example, we look for investment opportunities/themes that work not only in the base case but also in a high-probability risk scenario. This is a strategy to counteract unpredictability.

Global average economic growth masks considerable national and regional variations in growth and momentum.

Figure 3 – What are the risks to the outlook?Capital market, political and geopolitical risks all appear elevated

Matrix of the likelihood and severity of impact of risks to the global real estate outlook in 2017

• Positive impact • Negative impactExpected severity of impact

Expe

cted

like

lihoo

d of

hap

peni

ng

Low Medium High

Hig

h

• Natural disasters • Orderly Brexit

• Monetary policy misstep • Currency volatility worsens

Med

ium

• Epidemics • Geopolitics improve • New politics positive

• Stock market correction • Tech sector correction • Anti globalization impacts trade • Disorderly Brexit

• Bond market correction • Deflation • Geopolitics worsen • New politics pernicious

Low

• Energy crisis • Inflation • Currency volatility improves • Construction boom/oversupply

• Interest rates spike • US recession • China hard landing • EU break-up • Brexit decision reversed

Source: Invesco Real Estate as of September 2016For illustrative purposes only. Based on current market conditions, subject to change.


Figure 4 — Economic and financial outlook Last 10 years1 2016e 2017f 2018f 2019f 2017-2019f1

Rea

l GD

P g

row

th Y

OY

%

Dev

elop

ed

United States 1.4% 1.6% 2.3% 2.1% 1.9% 2.1%Japan 0.5% 0.5% 0.5% 0.8% 0.7% 0.7%Germany 1.5% 1.8% 1.5% 1.6% 1.5% 1.5%France 0.9% 1.3% 1.4% 1.7% 1.6% 1.6%United Kingdom 1.2% 1.8% 1.1% 1.4% 1.6% 1.4%Canada 1.6% 1.2% 2.0% 2.0% 2.1% 2.0%Australia 2.7% 2.7% 2.7% 2.9% 2.8% 2.8%Hong Kong 3.5% 1.4% 2.0% 2.8% 2.8% 2.5%Singapore 5.4% 1.7% 2.0% 3.2% 3.4% 2.9%

Em

ergi

ng

China 9.6% 6.5% 6.2% 5.9% 5.7% 5.9%Brazil 2.8% -3.2% 1.0% 2.5% 3.5% 2.3%India 7.5% 7.5% 7.2% 7.0% 6.8% 7.0%Mexico 2.4% 2.0% 2.6% 2.7% 2.9% 2.7%Indonesia 5.8% 5.1% 5.2% 5.4% 5.6% 5.4%Turkey 3.9% 3.3% 3.4% 3.6% 3.5% 3.5%

Last 10 years1 2016e 2017f 2018f 2019f 2017-2019f1

Em

ploy

men

t gr

owth

YO

Y%

Dev

elop

ed

United States 0.5% 1.8% 1.2% 0.7% 0.6% 0.8%Japan 0.0% 0.8% 0.3% 0.3% 0.3% 0.3%Germany 0.9% 1.2% 0.5% 0.2% 0.1% 0.3%France 0.3% 0.7% 0.8% 0.8% 0.7% 0.8%United Kingdom 0.7% 1.0% -0.5% 0.0% 0.2% -0.1%Canada 1.1% 0.6% 0.7% 0.9% 0.9% 0.8%Australia 1.8% 1.7% 2.1% 2.2% 1.9% 2.1%Hong Kong 1.3% 1.0% 0.5% 0.1% -0.1% 0.1%Singapore 4.8% 1.5% 1.2% 1.4% 1.1% 1.2%

Em

ergi

ng

China 0.4% 0.3% 0.3% 0.3% 0.3% 0.3%Brazil 1.9% -2.1% -0.2% 1.3% 1.9% 1.0%India 1.9% 1.9% 2.0% 2.0% 1.9% 2.0%Mexico 1.9% 1.3% 0.9% 1.1% 1.1% 1.0%Indonesia 2.2% 2.0% 1.9% 1.7% 1.6% 1.7%Turkey 3.1% 2.2% 1.6% 2.1% 1.8% 1.8%

Last 10 years1 2016e 2017f 2018f 2019f 2017-2019f1

10-y

ear

gove

rnm

ent

bond

rat

es

Dev

elop

ed

United States 3.1% 1.8% 2.1% 2.4% 2.7% 2.4%Japan 1.1% -0.1% 0.0% 0.0% 0.2% 0.1%Germany 2.6% 0.1% 0.6% 1.2% 1.8% 1.2%France 3.0% 0.4% 0.9% 1.6% 2.3% 1.6%United Kingdom 3.3% 1.2% 0.9% 1.3% 1.9% 1.4%Canada 2.9% 1.1% 1.4% 1.9% 2.3% 1.9%Australia 4.6% 2.1% 1.7% 2.3% 3.0% 2.4%Hong Kong 2.5% 1.2% 1.8% 2.2% 2.6% 2.2%Singapore 2.4% 2.0% 2.7% 3.2% 3.5% 3.1%

Em

ergi

ng

China 3.7% 2.8% 3.0% 3.4% 4.0% 3.4%Brazil 12.5% 13.1% 12.4% 12.0% 11.5% 12.0%India 7.9% 7.4% 7.2% 7.1% 6.8% 7.0%Mexico 6.9% 6.0% 6.8% 7.2% 7.3% 7.1%Indonesia 9.0% 7.8% 8.4% 8.7% 8.8% 8.6%Turkey 12.0% 9.9% 9.5% 8.5% 8.1% 8.7%

Last 10 years1 2016e 2017f 2018f 2019f 2017-2019f1

CP

I gro

wth

YO

Y%

Dev

elop

ed

United States 2.0% 1.1% 2.2% 2.0% 2.1% 2.1%Japan 0.3% -0.2% 0.2% 0.5% 1.2% 0.6%Germany 1.5% 0.5% 1.8% 1.8% 2.0% 1.9%France 1.3% 0.2% 1.3% 1.5% 1.7% 1.5%United Kingdom 2.5% 0.7% 2.0% 1.9% 1.8% 1.9%Canada 1.7% 1.5% 2.0% 2.1% 2.1% 2.0%Australia 2.6% 1.2% 1.7% 2.2% 2.5% 2.1%Hong Kong 3.3% 2.5% 2.4% 2.2% 2.1% 2.2%Singapore 2.6% -0.6% 0.9% 2.3% 2.1% 1.8%

Em

ergi

ng

China 2.9% 2.1% 2.4% 2.5% 2.8% 2.6%Brazil 5.7% 8.9% 5.4% 4.7% 4.3% 4.8%India 8.0% 5.6% 5.3% 5.3% 5.2% 5.3%Mexico 4.0% 2.9% 3.3% 3.2% 3.0% 3.2%Indonesia 6.8% 3.7% 4.2% 4.3% 4.2% 4.2%Turkey 8.3% 7.8% 7.8% 7.1% 6.2% 7.0%

e = estimate, f = forecastSource: Oxford Economics as of September 2016

1 Average per annum


Figure 5 – Quarterly transaction activity 2007-16 Transaction volumes slowed around the globe in H1 2016

Real Capital Analytics all property transaction volume excluding land (US$ billions, quarterly)• Americas • Europe • Asia Pacific • 4 quarter moving average

0

50

100

150

200

250

300

US$bns.

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Note: The figure relates to direct transactions involving all property types except for land. Source: Invesco Real Estate based on data from Real Capital Analytics as of September 2016 For illustrative purposes only. Based on current market conditions, subject to change.

Global real estate market outlook

Real estate occupier markets remain robust in much of the world. Pricing appears high, but not relative to other asset classes and not everywhere. Several markets still priced below prior peaks may offer potential upside.

Transaction volumes remain high at about US$175 billion per quarter but the momentum appears to have waned. Analysis of Real Capital Analytics (RCA) data shows that the four quarter moving average of global transaction volume declined in Q1 2016 for the first time since 2009, after 25 consecutive quarters of increases (Figure 5). This does not necessarily imply that investors are any less enthusiastic about the asset class. Surveys of institutional investors suggest many continue to raise allocations to real estate and that the pool of available capital remains significant. It may reflect concern about pricing or perhaps it is merely due to a reduction in the number of investors prepared to sell assets at this time.

The current conditions and near term market outlook for different traditional real estate sectors in major markets around the world are summarized in Figure 6 for the retail sector, Figure 7 for the industrial/logistics sector, Figure 9 for the office sector and Figure 10 for the residential sector.

Generally, market fundamentals appear to be strong and improving in this selection of major markets. For example, net absorption is expected to increase by more than 0.5% in 2017 in 16 of the 21 office markets, 16 of 17 residential markets, 10 of 21 retail markets and 10 of 21 logistics/industrial markets.Because demand is increasingly being offset by new construction, rents are no longer expected to increase quite as strongly in quite so many places. This is particularly noticeable in residential markets around the world where, in places, affordability has become more challenging. Rents are expected to grow by more than 2% in 2017 in 12 retail markets, nine office markets, eight industrial/logistics markets, and eight residential markets.

Prices. Prices appear high on several traditional metrics, but not on all measures and not universally. Typical real estate pricing measures include:

• Price per unit of floorspace (e.g., $ per square foot) compared to a previous peak/trough • Yield/cap rate compared to a previous record high/low • Value of a building compared to its replacement costs • Spread of real estate yield/cap rate over other sources of tenant credit (e.g., BBB corporate bonds) • Spread of real estate yield/cap rate over long-term local government bonds (i.e., the risk-free rate)

Prices appear high on several traditional metrics, but not on all measures and not universally.


Figure 6 — Outlook for retail in 20176

Market Country Cap rate/yield1 Demand2 Supply3 Occupancy4 Rent growth5

Asi

a P

acifi

c

Beijing CHN 6.4%Hong Kong HKG 4.8%Seoul KOR 4.8% n/a n/a n/aShanghai CHN 4.7%Singapore SGP 4.9%Sydney AUS 5.0% n/a n/a n/aTokyo JPN 4.5% n/a n/a n/a

Eur

ope

Frankfurt DEU 4.0%London GBR 3.8%Madrid ESP 4.3%Munich DEU 3.9%Paris (CBD) FRA 4.0%Stockholm SWE 4.5%Warsaw POL 5.0%

Uni

ted

Sta

tes

Boston USA 4.3%Houston USA 5.5%Los Angeles USA 4.5%New York USA 4.0%San Francisco USA 4.5%Seattle USA 5.0%Washington DC USA 4.3%


Figure 7 — Outlook for industrial/logistics in 2017


Asi

a P

acifi

c

Beijing CHN 7.2%Hong Kong HKG 5.1%Shanghai CHN 7.6%Singapore SGP 7.0%Sydney AUS 6.5% n/a n/a n/aTokyo JPN 4.5% n/a n/a

Eur

ope

Frankfurt DEU 4.9%Greater London GBR 5.0%Madrid ESP 6.0%Munich DEU 4.9%Paris FRA 5.8%Stockholm SWE 5.5%Warsaw POL 6.0%

Uni

ted

Sta

tes

Houston USA 5.3%Los Angeles USA 4.3%Miami USA 5.0%New York USA 4.8%Oakland USA 4.5%Riverside USA 4.4%Seattle USA 4.5%


1 Cap rate/yield – the cap rate/market yield (net initial yield in Europe) which Invesco Real Estate estimates was the price to acquire a Class A property in a prime location in the main submarket of the city during the third quarter of 2016.

2 Demand – Invesco Real Estate’s projected net absorption in 2017 expressed as a percentage of the stock at the end of 2016 grouped into five bands: > +2.0%, +0.5% to +2.0%, +/-0.5%, -0.5% to -2.0%, <-2.0%.

3 Supply – Invesco Real Estate’s projected new supply in 2017 expressed as a percentage of the stock at the end of 2016 grouped into five bands: > +2.0%, +0.5% to +2.0%, +/-0.5%, -0.5% to -2.0%, <-2.0%.

4 Occupancy – the change in the occupancy rate grouped into five bands: >+100 bps, +25bps to 100bps, +/-25bps, -25 to -100bps, <-100bps.

5 Rent growth – the change in (usually) asking rents we forecast for a Class A property in a prime location in the main submarket of a city grouped into five bands: > +5.0%, +2.0% to +5.0%, +/-2.0%, -2.0% to -5.0%, <-5.0%.

6 Shopping centers in Asia Pacific and Europe; neighborhood/community centers in US (typically grocery-anchored).


These different measures are used in different ways for different purposes in the evaluation of real estate investment. It is hard to build up a consistent general picture for all variables. For example, a measure such as the value of a building compared to its replacement cost is difficult to apply strategically because replacement cost is highly asset and location specific. Much depends on whether the value of land is treated as a fixed cost input or the residual. Practice varies around the world. Hence a case study approach is usually best, which is why this measure is usually referenced more in the underwriting of individual transactions where it can be a powerful tool.

The rent/price per unit area can provide a resistance level for further rent/value increases when it is approaching or above previous cyclical peaks. Similarly where yields/cap rates are already at record lows, this can provide a resistance level for further compression. Where neither of these conditions holds, there may be “headroom” for further value increases with less resistance. Of course, there is no reason that previous peaks in rents and prices or lows in yields/cap rates cannot be reasonably surpassed. That has generally been the historical pattern at least in nominal terms. As economies grow, the affordability of real estate rents and prices should improve. If the scale of capital looking at real estate increases, investors may be prepared to pay more to access the best opportunities. Historical cycles are just one reference point.

Absolute pricing is one consideration. Relative pricing is another. In Figure 8, for the office sector, we compare current pricing to prior record levels since 2000. In many markets, either current office yields/cap rates are already below previous cyclical lows (left hand side of the chart), values are above previous cyclical highs (lower half of the chart) or both (lower left hand quadrant). There are several in the top right hand quadrant, however, where values are still below previous cyclical highs and yields/cap rates remain higher than previous lows. Where strong rental growth is forecast in markets with values still below previous cyclical highs, there is good reason to expect that there might be potential for an increase in values in the period ahead because there is headroom against historical pricing. Examples include Los Angeles, Oakland, Madrid and Boston, but not Houston (where rents are expected to continue to fall in the short term).

As we showed earlier in Figure 2, the present spread over local 10-year government bond yields is unusually elevated in many markets. In part, of course, this is because government bond yields have been driven down in an era of exceptional monetary policy. For institutional investors considering real estate in the context of a multi-asset portfolio, the spread of the real estate yields/cap rates over a reference rate can be used at a strategic level to determine the attractiveness of real estate compared to alternative investment opportunities in other asset classes.

Where strong rental growth is forecast in markets with values still below previous cyclical highs, there is good reason to expect a potential increase in values.

Figure 8 — Office pricing compared to prior record levelsOakland, Los Angeles, Madrid and Boston are markets with yields higher and values lower than previous cycles

Q2 2016 Office pricing compared to prior record levels since 2000 > 2.0% 0.5 to 2.0% -0.5 to 0.5% -0.5 to -2.0% < 2.0%

30 60 90 120-120 -90 -60 -30 0

40

60

80

100

120

140

160

Yield below prior low Value below prior peak

Percentage of prior record highs

Basis pointsabove/below prior lows

Yield higher than prior low Value below prior peak

Yield below prior lowValue higher than prior peak

Curr

ent

offic

e ca

pita

l val

ues

vers

uspr

ior

reco

rd h

ighs

Current office cap rates versus prior record low levels

Yield higher than prior low Value higher than prior peak

Sydney

Shanghai

Los Angeles

Houston

Warsaw

Barcelona

Madrid

Boston Oakland

OsakaTokyo (5 wards)

Washington DCSeattle

PortlandSingaporeFrankfurtBerlin

Paris (CBD)

London (City)

New York

San FranciscoSeoulMunich

Stockholm

Hong Kong

Source: Invesco Real Estate using data from NCREIF and JLL as of September 2016For illustrative purposes only. Based on current market conditions, subject to change.


Figure 9 — Outlook for office in 2017


Asi

a P

acifi

c

Beijing CHN 6.6%Hong Kong HKG 3.2%Seoul KOR 4.6%Shanghai CHN 5.7%Singapore SGP 3.7%Sydney AUS 5.5%Tokyo (5 Wards)(6) JPN 3.0%

Eur

ope

Frankfurt DEU 3.9%London (City) GBR 4.5%Madrid ESP 4.1%Munich DEU 3.4%Paris (CBD) FRA 3.3%Stockholm SWE 3.7%Warsaw POL 4.9%

Uni

ted

Sta

tes

Boston USA 4.0%Houston USA 6.0%Los Angeles USA 4.8%New York USA 4.0%San Francisco USA 4.3%Seattle USA 4.8%Washington DC USA 4.5%


Figure 10 — Outlook for residential in 2017


Asi

a P

acifi

c

Bangkok THA 4.9%Beijing CHN 2.5%Hong Kong HKG 1.6%Singapore SGP 2.5%Shanghai CHN 2.1%Tokyo JPN 4.6% n/a n/a n/a

Eur

ope

Berlin DEU 3.9%Frankfurt DEU 4.0%London GBR 4.0%Madrid ESP 3.0%Boston USA 4.0%

Uni

ted

Sta

tes

Houston USA 5.0%Los Angeles USA 3.9%New York USA 3.6%San Francisco USA 3.8%Seattle USA 4.0%Washington DC USA 4.5%


1 Cap rate/yield – the cap rate/market yield which Invesco Real Estate estimates was the price to acquire a Class A property in a prime location in the main submarket of the city during the third quarter of 2016. In Europe, we use net initial yield for offices and gross yield for residential.

2 Demand – Invesco Real Estate’s projected net absorption in 2017 expressed as a percentage of the stock at the end of 2016 grouped into five bands: > +2.0%, +0.5% to +2.0%, +/-0.5%, -0.5% to -2.0%, <-2.0%.

3 Supply – Invesco Real Estate’s projected net new supply in 2017 expressed as a percentage of the stock at the end of 2016 grouped into five bands: > +2.0%, +0.5% to +2.0%, +/-0.5%, -0.5% to -2.0%, <-2.0%.

4 Occupancy – the change in the occupancy rate grouped into five bands: >+100 bps, +25bps to 100bps, +/-25bps, -25 to -100bps, <-100bps.

5 Rent growth – the change in (usually) asking rents we forecast for a Class A property in a prime location in the main submarket of a city grouped into five bands: > +5.0%, +2.0% to +5.0%, +/-2.0%, -2.0% to -5.0%, <-5.0%.

6 Tokyo 5 wards consists of Chiyoda-ku, Chuo-ku, Minato-ku, Shibuya-ku, and Shinjuku-ku.


Asia Pacific – real estate

Performance continues to be driven by yield/cap rate compression and mild income growth. Reflecting an expectation of extended low growth, low inflation conditions, we have again lowered our expectation for rent growth.

Figure 11 – Asia Pacific total returns 2006-2020fConvergence reduces the influence of market selection in out-performance

Standard deviation of Asia Pacific annual markets total returns 2006-2020f

Conv

erge

nce

Div

erge

nce

Stan

dard

dev

iatio

n of

tot

al r

etur

ns o

f al

l mar

ket

sect

ors

2020

f

2019

f

2018

f

2017

f

2016

f

2015

2014

2013

2012

2011

2010

2009

2008

2007

20060.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18Global Financial Crisis Era of exceptional monetary policy

f=forecastSource: Invesco Real Estate as of September 2016For illustrative purposes only. Based on current market conditions, subject to change.

Tighter real estate pricing amid lower transaction volumes in H1 2016 reflects investors’ desire for income. We believe the desire for income should continue to support pricing in the short to medium term:

• Strong investor interest in buying with a shortage of motivated sellers led transaction volumes to plunge in H1 2016 by approximately 40% year-on-year.

• Average market yields/cap rates in the region hardened further by 20-40 bps from their previous low levels with active buying by large international investors.

• Wide yield/cap rate spreads over local long-term government bond rates and stable real estate fundamentals may help drive prime yields/cap rates even lower in some markets in 2017.

Performance has converged over the last decade (Figure 11). While this overall trend appears likely to continue, cities such as Sydney, Melbourne and Seoul may outperform in the near term. There is a wide range of plausible scenarios for yields/cap rates which would create different total return outcomes. However, we believe the risk is more skewed to the upside in Sydney and Seoul than in other markets (Figure 12):

• There is a prospect of yield/cap rate compression in some cities in Australia and South Korea. Market fundamentals are improving in Sydney and Seoul where there is less supply.

• There are signs of demand softening in Japan. A rising level of supply casts a cloud over future performance of high-end offices in Tokyo's central five wards.

• Policy changes and weaker economic growth are risks in China, but cities such as Shanghai, Beijing and Shenzhen are likely to have more durable, diverse demand.

• Slower China growth, rising US interest rates and increasing supply are all threats for Hong Kong real estate. Singapore rents are likely to continue falling in 2017 in part due to supply concerns.

• Demand has weakened in Bangkok amidst political uncertainty whereas in Kuala Lumpur, supply remains the key issue.

Rents appear likely to increase more modestly in most markets due to occupier caution. The outlook for rents is diverse in 2017 (Figure 13). IRE expects rent growth from 2017-2019 to average 0.3% per annum in Asia Pacific compared to the 3.7% per annum achieved between 2006 and 2015.

Cities such as Sydney, Melbourne and Seoul may outperform in the near term.


Figure 12 — The outlook for selected major cities in Asia PacificThe range of possible total return outcomes remains wide in most markets

Annual average forecast unleveraged total returns and sensitivity (2017-19, % per annum)

Yield/cap rate unchanged Traditional approach Sensitivity 1 and 2 range

Office Industrial Retail

Beiji

ng

Hon

g K

ong

Seou

l

Shan

ghai

Sing

apor

e

Sydn

ey

Toky

o (5

War

ds)

Beiji

ng

Hon

g K

ong

Shan

ghai

Sing

apor

e

Sydn

ey

Toky

o

Beiji

ng

Hon

g K

ong

Seou

l

Shan

ghai

Sing

apor

e

Sydn

ey-12

-8

-4

0

4

8

12

16

Yield/cap rate unchanged: Yields/cap rates remain at Q2 2016 levelsTraditional approach: Yields/cap rates maintain a risk premium over bond ratesYield/cap rate sensitivity 1: Yields/cap rates fallYield/cap rate sensitivity 2: Yields/cap rates rise


Figure 13 — The 2017 outlook for Asia Pacific real estate rentsRents appear set to continue to increase, but more slowly in more markets

Office sector Industrial sector Residential sector Retail sector

Rentsfalling

Rental declineslowing

Rental growthslowing

Rentsrising

Hong Kong, Nagoya, Osaka City, Tokyo 23, Tokyo 5

Tokyo

Tokyo

Shenzhen

Hong Kong

Singapore

Guangzhou

Singapore

Kuala Lumpur

Hong Kong

Singapore

SingaporePerthSydney

Perth

Brisbane, Perth

Seoul, Melbourne

Mumbai

Sydney

Taipei

Bangkok

Fukuoka, Shanghai

Kuala Lumpur, Osaka

Beijing

Beijing, Shanghai

Sydney

Melbourne

Bangkok

Shanghai

Beijing

Brisbane

Melbourne

KualaLumpur

Seoul, Shanghai, Shenzhen

Beijing, Guangzhou, Shenzhen

Brisbane

TokyoHong Kong

Guangzhou

Note: Market positions are not relative and comparable. Duration of market cycles also varies.Source: Invesco Real Estate as of September 2016For illustrative purposes only. Based on current market conditions, subject to change.


We believe a granular approach focusing on asset and submarket drivers is likely to be important in Asia Pacific. IRE strategy priorities and execution themes in Asia Pacific in 2017 are summarized in Figure 14. We intend to focus on strong assets in strong submarkets which should help to achieve long-term durable income amidst the heightened economic uncertainty.

For Asia Pacific core strategies, we intend to achieve income security by: • Prioritizing Sydney and Melbourne in Australia and Seoul in South Korea • Adopting a defensive stance in Japan by focusing on quality assets with secure income • Acquiring selectively in Beijing and Shanghai among China’s Tier One cities • Monitoring Singapore closely for opportunities should prices correct • Preferring the logistics sectors which we believe may provide relatively more stable income • Assessing specialty sector assets selectively for those with “core-like” stable income

For value-add and opportunistic strategies, our focus is on short-term execution and funding gaps: • There may be opportunities to recapitalize residential developments in Australia as a result of bifurcating bank lending availability.

• We believe that there are opportunities for refurbishment and asset enhancement in markets in the rental recovery stage which have the potential to achieve a higher internal rate of return (IRR) by adopting short execution strategies. Examples include Seoul retail and Shanghai retail.

• Strategies to optimize under-utilized space might be possible where tenant demand is changing. Examples include international retailer demand for city center street retail in Australia. Development may be viable in the logistics and certain specialty sectors in emerging markets.

IRE forecasts of Asia Pacific real estate performance in 2017-19 are shown in Figure 15 assuming yields/cap rates maintain a risk premium over local long-term government bonds that fluctuate within one standard deviation of the long-term average. Certain major city/sector combinations stand out:

• Seoul in the retail sector • Shanghai and Beijing in the industrial/logistics sector • Sydney, Melbourne, Beijing and Seoul in the office sector

There appear solid fundamental drivers to support the specialty sectors including data centers, self-storage, student housing, seniors housing and healthcare. We intend to adopt a selective approach in assessing opportunities which could offer secure long-term income and reasonable liquidity.

We intend to focus on strong assets in strong submarkets which should help to achieve long-term durable income amidst the heightened economic uncertainty.

Figure 14 — Asia Pacific strategy considerations for 2017We intend to focus on achieving long-term durable income

IRE strategy priorities and execution themes in Asia Pacific in 2017

Core Higher return

Office – Focus on prime submarkets in gateway markets for long-term growth.

– Selectively take vacancy risk in growth markets like Sydney.

– Forward funding with substantial pre-let in prime submarkets

– Monitor weak markets for better entry points and distress.

Apartment – Focus on markets with population and income growth.

– Development funding gaps amid tight bank lending in Australia

Industrial/Logistics – Highly-functional modern facilities in key hubs with long leases

– Forward funding in high-demand locations – Assets with conversion potential for specialty

uses (e.g., data centers or self-storage)

Retail – Focus on assets anchored by mass affluent and experiential retailers.

– Capitalize on growing tourism trends in certain markets.

– Convert and upgrade under-utilized lower floors of commercial buildings to retail.

– Refurbish and re-tenant in high density, fast-changing locations.

There is no guarantee that these strategies are currently being pursued or will be pursued by Invesco. This does not constitute investment advice. Source: Invesco Real Estate as of September 2016For illustrative purposes only. Based on current market conditions, subject to change.


Figure 15 — The Asia Pacific real estate performance outlook 2017-19Diverse performance is expected under the traditional approach with cities like Shenzhen, Shanghai, Beijing, Sydney and Melbourne standing out

Expected market performance relative to expected regional average performance 2017-19

Overweight Market weight Underweight Equal-weighted regional average forecast performance 2017-19

Retail Industrial Office Residential

Stro

nger

Wea

ker

Beijing

Beijing

Beijing

Kuala Lumpur

Kuala Lumpur

Kuala Lumpur

Seoul

Seoul

Shenzhen BeijingShanghai

Perth

Perth

BrisbaneMelbourne

Sydney

Sydney

Shanghai

Shanghai

Shanghai

Bangkok

Bangkok

Mumbai

PerthGuangzhou

Brisbane

Brisbane

SydneyMelbourne

Melbourne

Singapore

Tokyo

Tokyo

Tokyo

Tokyo

Singapore

Singapore

Singapore

Guangzhou

Guangzhou

Taipei

Fukuoka

Hong Kong

Hong Kong

Hong Kong

Hong KongNagoyaShenzhen

Shenzhen

Osaka

Invesco Real Estate sector weighting

Sector Retail Industrial Office Residential

Tactical weighting

Neutral Overweight Neutral Underweight

Note: Market positions are not relative and comparable. Duration of market cycles also varies.This does not constitute investment advice. There is no guarantee that the results will be realized.Source: Invesco Real Estate as of September 2016For illustrative purposes only. Based on current market conditions, subject to change.


Europe – real estate

Uncertainty following the United Kingdom’s (UK) decision to leave the European Union (“Brexit”) drove interest rates lower. We believe an “even lower for even longer” environment creates opportunities for European real estate investment.

Figure 16 — Actual and expected rental growth Varying patterns of growth suggest a range of strategies

Resilience – markets with steady growth and low vacancy

Reversion – markets that delivered strong rental growth in 2015-2016e

Recovery – markets expected to deliver strong recovery growth 2017f-2019f

Cumulative actual and forecast rental growth (%) Cumulative rental growth (%) Cumulative forecast rental growth (%)

• 2015 • 2016e • 2017f • 2018f • 2015 • 2016e • 2017f • 2018f • 2019f

0

5

10

15

20

25

Mun

ich

logi

stic

s

UK

long

leas

e in

dexe

d lo

gist

ics

Ham

burg

offi

ces

Mun

ich

offic

es

Am

ster

dam

ret

ail

Lond

on lo

gist

ics

Birm

ingh

am lo

gist

ics

Paris

CBD

ret

ail

Stoc

khol

m o

ffice

s

Lond

on -

Oxf

ord

Str

eet

reta

il 0

10

20

30

40

50

Berli

n of

fices

Stoc

khol

m o

ffice

s

Prag

ue r

etai

l

War

saw

ret

ail

Cope

nhag

en r

etai

l

Inne

r St

ockh

olm

offi

ces

Dub

lin o

ffice

s

Rom

e re

tail

Mila

n re

tail

Lond

on B

ond

Str

eet

reta

il 0

4

8

12

16

20Ba

rcel

ona

reta

il

Mad

rid r

etai

l

Lisb

on lo

gist

ics

Lisb

on o

ffice

s

Mad

rid o

ffice

s

Mos

cow

offi

ces

Cope

nhag

en o

ffice

s

Mad

rid lo

gist

ics

Barc

elon

a of

fices

Lisb

on r

etai

l

Source: Invesco Real Estate, H2 2016, based on data from CBRE, Q2 2016. e = estimate, f= forecastFor illustrative purposes only. Based on current market conditions, subject to change.

Even lower for even longer: Both the European Central Bank (ECB) and the Bank of England (BoE) have signaled their intent to provide monetary stimulus to support economic growth during the uncertainty triggered by Brexit. This uncertainty could dampen growth in the medium term. In this scenario, the longer-term economic outlook for many European countries could be weaker than earlier thought. Uncertainty could delay business investment, thereby dampening occupier demand. We forecast that rental growth is likely to be delayed and there may be rental declines in market sectors most exposed to Brexit uncertainty (e.g., City of London offices).

Security of income has become increasingly important to underpin performance. In this context, we believe that we need to focus on rental resilience, rental reversion and recovery potential to drive out-performance (Figure 16). Therefore we plan to focus on:

• Markets where supply remains under control and fundamentals support income growth, such as Munich • Markets where growth has already occurred and there is reversionary potential, such as Stockholm offices and London high street retail

• Markets where we expect robust rental growth driven by recovery from a sharp downturn, such as Madrid and Barcelona offices

The Brexit process is not expected officially to start until 2017 and negotiations are then likely to last several years. This suggests an extended period of ultra-low interest rates is likely. As a result, European real estate yields/cap rates are likely to be lower for longer, and there is a possibility that yields/cap rates for core assets may trend lower in many markets in the near term.

In Figure 17 we illustrate the outlook for real estate performance for selected major cities in Europe in the period 2017-19 under a range of different sensitivity tests for yield/cap rate movements. Over the next three years, it is hard to see there being much, if any, upward pressure on yields/cap rates given the current wide spreads over the very low long-term government bond yields.

The outlook for 2017 for European real estate rents shows that despite the uncertainties, fundamentals appear to be improving in much of Continental Europe (Figure 18). Most markets continue to be in the early or mid-stages of a cyclical uplift in prime rents.

The outlook for 2017 for European real estate rents shows that despite the uncertainties, fundamentals appear to be improving in much of Continental Europe.


Figure 17 — The outlook for selected major cities in EuropeThe traditional approach remains close to the top of the range of potential outcomes in most cities



Office Industrial Retail

-12

-8

-4

0

4

8

12

16

Barc

elon

a

Fran

kfur

t

Lond

on (

City

)

Lond

on (

WE)

Mad

rid

Mun

ich

Paris

(CB

D)

Stoc

khol

m

War

saw

Barc

elon

a

Fran

kfur

t

Lond

on

Mad

rid

Mun

ich

Paris

Stoc

khol

m

War

saw

Barc

elon

a

Fran

kfur

t

Lond

on (

WE)

Mad

rid

Mun

ich

Paris

(CB

D)

Stoc

khol

m

War

saw



Figure 18 — The 2017 outlook for European real estate rentsFundamentals appear to be strengthening in much of continental Europe

Office sector Industrial sector Retail sector

Rentsfalling



Rentsrising

Berlin

Paris IdF

Hamburg

Munich, Milan

MoscowMunich

Milan Amsterdam, Rotterdam, Hamburg, Frankfurt, Lyon, PragueWarsaw

Frankfurt, Lyon, Prague

Zurich, Brussels, Warsaw

Lyon, Brussels, Milan, Moscow

Dublin, Berlin, Hamburg, Frankfurt, Amsterdam, Munich

Madrid

Paris

Manchester

Barcelona

Stockholm, Madrid

London

London City

Birmingham, London, Stockholm

Manchester, Brussels

London WE, BirminghamBerlin

Stockholm, Amsterdam

Dublin, Madrid, BarcelonaBarcelona, Dublin

Paris CBD

Warsaw, Prague

Note: Market positions are not relative and comparable. Duration of market cycles also varies.Source: Invesco Real Estate as of September 2016For illustrative purposes only. Based on current market conditions, subject to change.


Figure 19 — European strategy considerations for 2017We favor core markets and assets given increased uncertainty

IRE strategy priorities and execution themes in Europe in 2017

Core Higher return

Office – Focus on core locations that offer rental resilience.

– No compromise on location/building characteristics; buildings need to be efficient.

– Refurbishment and development in major supply-constrained markets

– Assets with near-term lease events in markets that are reversionary

Apartment – Locations within major cities with access to good public transport

– Products <10 years old to reduce capex and complexity of asset management

– Development of “for-rent” assets in the UK – first mover advantage is important.

– “For-sale” development in central locations in major Spanish cities

Industrial/Logistics – Locations with good access to large customer base for retail fulfilment

– Quality assets with flexibility to adapt to rapid technological change (e.g., automation)

– Forward funding where long leases have been agreed with tenants

– Development in partnership with tenants with highly bespoke requirements

Retail – Major high streets sought by major brands for profile raising ("brandship" stores)

– Luxury retail high streets where rental growth has proved resilient over the past 10 years

– Well-established schemes with opportunities to reconfigure/refurbish.

– High street retail in overlooked second tier cities with strong brand presence


IRE strategy priorities and execution themes in Europe in 2017 are summarized in Figure 19. We intend to focus on durable locations, such as cities where employment growth is expected to be strong and sub-markets with good accessibility, amenities and ambience.

For European core strategies, a focus on quality is critical: • As yields/cap rates are driven lower, we expect discernment in pricing with the best pricing achieved where asset quality, location and covenant strength are all viewed positively.

• Uncertainty may inhibit rent growth prospects in the short term, but there may be opportunities to capture reversion in markets that have already had strong rental growth.

• Assets with rental resilience are better placed to ride out the capital market cycle and deliver attractive income returns. Tier one cities in Germany and the Nordics fit this profile.

For European value-add strategies, the length of cycle supports a broad range of strategies: • The creation of long-leased, core properties through forward funding of pre-let development, or refurbishment and re-leasing of well-located assets in major markets appears attractive.

• Uncertainty leads us to favor higher risk strategies such as refurbishment and leasing risk in major markets rather than chasing yield into more secondary markets.

• Limited debt availability for higher-risk strategies provides scope to partner with developers to fund development. The remaining cycle length appears ample to execute such strategies.

The forecast real estate performance in 2017-19 for certain major city/sector combinations stand out: • Milan in the retail sector • Madrid in the industrial/logistics sector • Dublin, Barcelona and Madrid in the office sector

Two traditional sectors, residential and hotel, are providing growing opportunities at present. Student housing in Germany is one of the best examples of the emergence of a specialty sector as a potentially interesting core-like alternative to the traditional sectors.

The outlook for the UK has changed considerably over the last six months. Potential future damage to occupier markets is likely to be the main risk. The initial impact of Brexit on real estate values appears modest (a five percent decline in values by the end of 2016 on average). A weaker GBP and some softening of real estate prices could tempt some investors to the UK due to its relatively high yields/cap rates in a global context.

A weaker GBP and some softening of real estate prices could tempt some investors to the UK.


Figure 20 — The European real estate performance outlook 2017-19Recovering markets in Ireland, Italy and Spain continue to benefit from a cyclical upswing

Expected market performance relative to expected regional average performance 2017-19

Overweight Market weight Underweight Equal-weighted regional average forecast performance 2017-19

Retail Logistics Office

Stro

nger

Wea

ker

Barcelona

Madrid

Moscow

Prague

London (WE)

Birmingham

Hamburg

Milan

BrusselsLondon (City)

Paris (Rive Gauche)Manchester

AmsterdamMunich

Berlin

Dublin

Warsaw

Frankfurt

Lyon

Paris (CBD)

Zurich

Stockholm

Dublin

Barcelona

Madrid

ManchesterAmsterdam

Rotterdam, Munich

BirminghamMilan

Greater London, Amsterdam

Frankfurt

Dublin

Moscow

Warsaw

Gothenburg

Hamburg

BerlinStockholm, Paris (IdF)

BrusselsPrague

Lyon

Moscow

Stockholm

Prague

Warsaw

Madrid

Birmingham

Barcelona

Manchester

Hamburg, Berlin

Milan

Munich

Frankfurt

Lyon

Paris

Brussels

London


Sector Retail Logistics Office

Tactical weighting

Overweight Underweight Market weight

Note: Market positions are not relative and comparable. Duration of market cycles also varies.This does not constitute investment advice. There is no guarantee that the results will be realized.Source: Invesco Real Estate as of September 2016For illustrative purposes only. Based on current market conditions, subject to change.


Figure 21 — US real estate pricing and fundamentalsBy asset quality, pricing is diverging yet fundamentals are improving

Office yield/cap rates (%) Office occupancy rates (%)

• Spread (RHS) • Institutional office • Broad office • Spread (RHS) • Institutional office • Broad office

90

110

130

150

170

190

4

5

6

7

8

9

2016

2015

2014

2013

2012

2011

2010 50

90

130

170

210

250

80

82

84

86

88

9020

16

2015

2014

2013

2012

2011

2010

Source: Invesco Real Estate using data from NCREIF (institutional office cap rates and occupancy rates), Real Capital Analytics (broad market cap rates), and CBRE-EA (broad market occupancy rates) as of August 2016. For illustrative purposes only. Based on current market conditions, subject to change.

The outlook for US real estate can be framed around five themes: • Winners versus losers benefiting certain industries, property segments, and locations • Near-term growth with mid-term caution reflecting sentiment about the US economy • Cyclical versus secular trends that may define the nature of future cycles • Fundamentals versus capital which do not necessarily move in a synchronized manner • Policy uncertainty might result from the US presidential election.

US real estate prices have been diverging across quality tiers despite broad improvement in market fundamentals (Figure 21). Real estate demand has broadly exceeded supply over the past year. Capital flows have continued to be strong. This reflects heightened risk aversion in light of public market volatility, political and geopolitical uncertainty and the extension of quantitative easing in other parts of the world:

• Prices. “Uber-core” assets with the most favorable location and adaptability attributes continue to be competitively priced. The next quality tier (either the next best building quality or location) has experienced a widening of yields/cap rates recently. This suggests a possible wide range of total return outlooks depending on the movement of yields/cap rates in the period ahead (Figure 22).

• Occupier market fundamentals. Best and next-tier US market segments are well-occupied today across most markets. Late-to-recover locations and assets have experienced some occupancy gains over the past year. Moreover, the regulatory focus on bank capital reserves and banks' lending exposure to commercial real estate is expected to moderate the pace of construction lending, which could curb supply later in this cycle.

Performance continues to be underpinned by market fundamentals. Leasing moderated in H1 2016 and rents continued to rise, just more slowly (Figure 23). With net operating income expected to moderate and with yields/cap rates near historic lows, finding opportunities will likely be challenging in 2017. Uncertainty over domestic policy outcomes following the US presidential election clouds the outlook. Immigration, infrastructure and trade policy are all key issues in the election with consequences for real estate. For example, tilts by both major parties toward more protectionist trade policies could reduce the rate of US economic growth and cause shifts in the supply chain and national economic structure.

US real estate prices have been diverging across quality tiers despite broad improvement in market fundamentals.

United States – real estate

The US economy is starting its eighth year of economic expansion. IRE intends to focus on real estate with enduring qualities attractive to the most creditworthy tenants to provide resilience regardless of any change in economic conditions.


Figure 22 — The outlook for selected major cities in the US The traditional approach now lies in the middle of the potential range in many cities



Office Industrial Apartment Retail

-12

-8

-4

0

4

8

12

16

Bost

on

Hou

ston

Los

Ang

eles

New

Yor

k

San

Fran

cisc

o

Seat

tle

Was

hing

ton

DC

Port

land

Hou

ston

Los

Ang

eles

Mia

mi

New

Yor

k

Oak

land

Riv

ersi

de

Seat

tle

Bost

on

Hou

ston

Los

Ang

eles

New

Yor

k

San

Fran

cisc

o

Seat

tle

Was

hing

ton

DC

Port

land

Bost

on

Hou

ston

Los

Ang

eles

New

Yor

k

San

Fran

cisc

o

Seat

tle

Was

hing

ton

DC

Port

land



Figure 23 — The 2017 outlook for US real estate rentsFundamentals remain strong in most city/sector combinations, although more markets have become late cycle

Office sector Industrial sector Residential sector Retail sector

Rentsfalling



Rentsrising

San Francisco

Houston

New York City, San Diego

Los Angeles

Washington DC

Dallas, New York City, Oakland, Portland, Seattle, TampaDenver, Miami, San Francisco, San Jose

Austin, Boston, Nashville, Phoenix, Washington DC

New York City, San FranciscoChicago, Denver, Riverside, Seattle

Chicago, Denver, Miami, Minneapolis, Philadelphia, Seattle

Boston, Oakland, Portland, San Jose

Austin, Phoenix

Atlanta, Dallas, Orange County

Atlanta, Los Angeles, Miami, OaklandAustin, Boston, Miami, Washington DC, West Palm Beach

Phoenix, San Diego

Baltimore, Boston, Dallas, New York City, San Jose

Chicago, Dallas, Denver, Oakland, Phoenix, San Diego, San JoseLos Angeles, Orlando, Portland, Seattle, Tampa

Newark, Philadelphia, Washington DC

Houston

Atlanta, Chicago, Houston, Los Angeles, Riverside, San Diego

Houston

Note: Market positions are not relative and comparable. Duration of market cycles also varies. Source: Invesco Real Estate as of September 2016For illustrative purposes only. Based on current market conditions, subject to change.


Figure 24 — US strategy considerations for 2017We intend to continue to focus on strategies that fortify income protection

IRE strategy priorities and execution themes in the US in 2017

Core Higher return

Office – On renewals, exchange lease rate for longer term to establish greater income stability.

– Actively manage exposures to weaker tenant credit and space consolidation events.

– Develop in highly walkable established locations with convenient public transit.

– Develop or renovate in emerging locations with clear demand drivers and linkages.

Apartment – Walkable, amenity-rich urban and primary suburban nodes with transportation links

– Newer product (<10 years old) to limit capital expenditure and simplify asset management

– Take lease-up risk in locations where new supply is comparatively low.

– Develop in high-density locations where employment, transit and amenities overlap.

Industrial/Logistics – Buy in perennial port locations with mega population/consumer base.

– Diversify into locally-served infill warehouse to hedge trade policy risk.

– Take leasing risk on new buildings; more infill focus on existing buildings.

– Buy in high-density locations where industrial is not the highest and best use.

Retail – Acquire experiential retail in high-density mixed use environments.

– Dominant, adaptable, urban grocery-anchored centers

– Renovation in high-density urban locations to create neighborhood retail

– Development of best-of-class mixed use schemes in urban environments


To “deflect the cycle,” IRE intends to invest selectively with long-term drivers in mind. Towards the end of an economic cycle, opportunities whose demand drivers are not as cycle-reliant could improve income stability and contribute to long-term durable value. Location quality and asset adaptability are likely to be performance differentiators:

• We remain committed to walkable, high-density locations with abundant amenities and good transportation accessibility, and to competitive, functional, adaptable buildings.

• We plan to reduce the risk of volatility by avoiding commodity locations and actively managing exposure to tenants with weaker credit or vulnerable to mergers and acquisition.

For US core and income strategies, income durability is the chief priority (Figure 24): • We believe active management of lease expiration, tenant credit and a commitment to location quality are among the best tactics to support income stability.

• On expiration, we intend to trade some of the mark-to-market margin on rental rate growth for longer lease duration and upgrade tenant credit as leases expire, when possible.

For US value-add and opportunistic strategies, duration and debt remain key themes: • We believe development and mispriced debt refinancing are expected to provide the best investment opportunities.

• Emerging submarkets that are undergoing transformation of infrastructure and demand drivers should be identified for potential unrealized value.

Our beliefs about the cycle and the possible total return outlook (Figure 25) cause us to adopt the following sector allocation strategies:

• Office: Underweight due to its volatility. We remain mindful of user trends toward the best locations and adaptable assets and intend to avoid assets with incurable structural limitations.

• Apartment: Mild overweight because of the higher historical risk-adjusted returns which are desirable during a slowdown, although we are aware that near-term performance may lag.

• Industrial: Mild overweight to benefit from online retailing, but balance exposure to port-centric warehouses with local distribution due to the risk of rising protectionism.

• Retail: Mild overweight due to the attractive historical risk-adjusted returns during slowdowns, but with a focus on experiential shopping to differentiate from online retail.

• Specialty sectors: Monitor for opportunities. While these sectors are under-represented in direct institutional investor portfolios currently, they are expected to gain broader adoption over time.

Towards the end of an economic cycle, opportunities whose demand drivers are not as cycle-reliant could improve income stability.


Figure 25 — The United States real estate performance outlook 2017-19We believe many retail and industrial markets may outperform

Expected market performance relative to expected national average performance 2017-19

Overweight Market weight Underweight IRE does not differentiate Equal-weighted national average forecast performance 2017-19

Retail Industrial Office Apartment

Stro

nger

Wea

ker

Houston

Houston

Austin

New YorkRiverside

OaklandDenver

San Diego

Portland

Los Angeles

Atlanta Seattle

New York

Newark

Washington DC

San Francisco

San Jose

Chicago

Phoenix

Austin

San Jose

Dallas, Oakland

Los Angeles

Miami

Miami

Atlanta

Boston, New York San Francisco

DenverSeattle

Washington DC

Chicago

PortlandAustin

San Diego

Los Angeles

MiamiMiami

Atlanta

Oakland

ChicagoWashington DC, Boston

Dallas

Newark

San Jose

Phoenix

San Diego

Atlanta

Boston

San Francisco

San Jose

Dallas

Seattle, Washington DCPortland

Chicago

San Diego

New York

Phoenix

Los Angeles

HoustonHouston

Oakland

Newark

Riverside, Denver

Riverside

Phoenix

Dallas

Boston

Denver, Seattle


Sector Retail Industrial Office Apartment

Tactical weighting

Mild overweight Mild overweight Underweight Mild overweight

Note: Market positions are not relative and comparable. Duration of market cycles also varies. This does not constitute investment advice. There is no guarantee that the results will be realized.Source: Invesco Real Estate as of September 2016For illustrative purposes only. Based on current market conditions, subject to change.


Figure 26 — US REIT market capitalization by sectorThe importance of specialty sectors has increased significantly in last decade

Share of US REIT equity market capitalization by sector (%)

• 2006 • 2016

0

5

10

15

20

25

30

17.4

13.1

26.1

23.6

18.2

10.2

6.2

6.1

10.5

5.6 7.

3

4.4

4.7

10.7

4.6 6.

0

5.3

8.4

4.9 6.

6

Oth

ersp

ecia

lty

Infr

astr

uctu

re

Dat

a ce

nter

s

Self-

stor

age

Hea

lthca

re

Lodg

ing

Div

ersi

fied

Indu

stria

l

Offi

ce

Reta

il

Resi

dent

ial

Source: Invesco Real Estate using data from NAREIT as of September 2016.For illustrative purposes only. Based on current market conditions, subject to change.

Global investment strategy considerations

Increasingly important in listed real estate, specialty sectors may provide a way to expand the investible universe of unlisted real estate. Core assets in some specialty sectors have similar characteristics to traditional real estate sectors and trade at a premium.

Institutional investors have traditionally considered office, industrial, retail, hotel (lodging) and multi-family (rental apartments) as suitable for core real estate investment. Strong investor demand in recent years led investors to look for alternative sources of income return. Some have looked at next-tier markets or submarkets hoping for higher yields/cap rates. Others have looked at “manage-to-core” or “build-to-core” strategies to create core product. Another option is to look at specialty real estate with generally similar performance characteristics to traditional sectors.

We have initiated greater coverage of specialty sectors in this year's Global House View, and in each regional volume, choosing to focus initially on four which we believe may have deep demand, an income return at least as high as the traditional sectors and liquidity throughout the cycle:

• Data centers: Demand is driven by outsourcing and new technology (e.g., social media, streaming, big data, autonomous cars). Location drivers are cheap energy and customer proximity for speed and reliability. The emerging sector has strong growth prospects.

• Healthcare: With demand underpinned by aging populations in many developed countries, the sector includes seniors housing and medical office buildings. Operationally intensive and exposed to regulatory oversight, the sector typically has higher yields/cap rates.

• Self-storage: Demand drivers include major life-events (relocation, moving, divorce, death) and small businesses. The sector is operationally straightforward and capital expenditure needs are low. Durable income is attracting institutional investor interest in many countries.

• Student housing: Rising university numbers, budget constraints and lack of options drive demand. Achieving occupancy targets prior to the school year is critical. Operational characteristics are similar to rental apartments, but with higher yields/cap rates.

The rise of the specialty sectors appears to be a global trend but one that is perhaps furthest advanced in the US. The specialty sector opportunity set is growing (Figure 26). In the US in 2006, traditional sectors had an equity market capitalization of US$ 299 billion, 86% of the US REIT market. By 2016, their market capitalization had more than doubled to US$ 655 billion, but traditional sectors had fallen to just 63% of the index. Over the same time period, specialty sectors increased sevenfold from US$ 50 billion in 2006 to US$ 385 billion in 2016. There are signs that a similar growth pattern may be embryonic in unlisted real estate.

We have initiated greater coverage of specialty sectors in this year's Global House View, and in each regional volume, choosing to focus initially on four which we believe may have deep demand.

Sectors 2006 2016

Traditional 86% 63%

Specialty 14% 37%


Figure 27 — Premium or Discount to NAVGlobal listed real estate securities are priced within normal bounds

Premium or Discount to NAV

• Global long-term average • Global

%

-40

-30

-20

-10

0

10

20

30

08/1

6

02/1

6

08/1

5

02/1

5

08/1

4

02/1

4

08/1

3

02/1

3

08/1

2

02/1

2

08/1

1

02/1

1

08/1

0

02/1

0

08/0

9

02/0

9

08/0

8

02/0

8

08/0

7

02/0

7

08/0

6

02/0

6

08/0

5

02/0

5

Note: Long-term average is calculated based on data from February 2005 to August 2016. Source: Invesco Real Estate based on data from FTSE EPRA NAREIT as of September 2016For illustrative purposes only. Based on current market conditions, subject to change.

Global listed real estate investment strategy

Increasing caution is likely warranted as average listed real estate company valuations are slightly above underlying asset values and the outlook for cash flow growth appears to be moderating.

Global listed real estate has delivered an 11% total return year-to-date in US dollar terms as of September 30, 2016, according to the FTSE EPRA/NAREIT Global Developed Index. The sector has drawn income-focused investors due to its dividend yield and prospects for moderate cash flow growth.

Real estate became the 11th Global Industry Classification Standard sector (GICS) at the end of August, a positive development. The removal of real estate from the financial sector offers potential benefits including increased visibility, a larger investor base and, longer-term, a potential reduction in volatility. The change may draw attention to diversified managers that have been underweight real estate, but in the near term it may lead to greater volatility as asset allocation shifts are made.

The main challenge is the increasing impact of central bank policy on stock prices. While stock prices are ultimately driven by underlying real estate fundamentals and capital markets, the reduced visibility on central bank policy may result in increased volatility in share prices and debt costs. Listed real estate valuations suggest listed and unlisted real estate pricing remains broadly in-line. The premium or discount to net asset value is well within a +/- 10% band (Figure 27):

• Asia Pacific: Developer stocks generally trade at attractive valuations but in a weak operating environment. Weakening demand and upcoming supply in Japan increases the importance of BOJ policy visibility. Supply is a challenge for Singapore REITs but high dividend yields provide attractive income. The stable yields and modest growth of Australian REITs are relatively attractive.

• Europe: There continue to be sustainable higher dividend yield opportunities in Europe but the outlook for market fundamentals varies. Uncertainty over Brexit suggests many UK REITs are likely to maintain a discount to net asset value for some time. In Continental Europe, the ready availability of equity and debt capital may help drive acquisition-led growth and lower interest costs.

• North America: Well-capitalized REITs with a value-adding focus represent a favorable opportunity. Several sectors trade at discounts to net asset value, offering the potential to reduce this discount through asset sales. For other companies that trade at material premiums (particularly in the niche sectors of triple net, healthcare, and data centers), acquisitions continue to be a driver of growth.

IRE strategies are likely to balance ownership of companies able to add value through active management with attractively yielding investment opportunities in a continued low interest rate environment.

Real estate became the 11th Global Industry Classification Standard sector (GICS) at the end of August, a positive development.


Diversification continues to be a strong reason to consider global real estate. However, elevated levels of capital market, political and geopolitical uncertainty suggest little reason to adjust our present neutral tactical position in all three regions.

Global unlisted real estate investment strategy

Investors have many motivations for considering cross-border or global unlisted real estate at this time, including:

• There is improved accessibility due to the emergence of pan-regional open-ended funds in all three regions which enables small and mid-sized institutions to consider international real estate.

• Real estate provides a source of largely contractual recurring income at prices that generally appear attractive relative to other asset classes such as long-term government bonds.

• Asset selection and active management of real estate assets provide the opportunity for outperformance where local market expertise can help identify mispriced assets and locations.

• Moving beyond a domestic market can offer significant return enhancement and portfolio risk reduction because real estate is fundamentally a local asset class.

The diversification benefits of international real estate can be demonstrated in many ways at the regional, national and city levels, or at the property and fund levels. In Figure 28, we provide a visual impression of the different property level performance over time according to MSCI IPD. Starting from 1995, we plotted the longest available total return series for 32 countries and 94 cities. Each grey line represents an individual country or city. These lines show considerable variation each year around the global average of 8.2% per annum over the period 1998-2015, which shows a much smoother profile (standard deviation of 5.9%) than the individual lines (average standard deviation of 7.0%). We have highlighted three countries or cities on each chart to illustrate that an understanding of long-term national and city-level performance characteristics can help in determining the role those countries or cities should play in regional or global strategies and tactics.

We intend to maintain our present neutral tactical allocations to all three regions for global unlisted real estate investment strategies at this time. Throughout this H2 2016 Global House View we have highlighted the elevated levels of capital market, political and geopolitical uncertainties. Until greater clarity on a potentially sustainable differentiation in the regional outlook emerges, this does not feel like a time to adopt large tactical regional tilts.

Moving beyond a domestic market can offer significant return enhancement and portfolio risk reduction because real estate is fundamentally a local asset class.

Figure 28 — IPD direct real estate total return by country and by city (%, local currency, all property types)A diversified global portfolio seems to offer a better risk-adjusted return over time

32 countries and global 94 cities and global

• USA • Japan • Germany • Global • Los Angeles • Tokyo • Munich • Global

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

-40

-30

-20

-10

0

10

20

30

40

50

-40

-30

-20

-10

0

10

20

30

40

50

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

Note: Each grey line represents the annual total return series over time for an individual country or city. Source: Invesco Real Estate using data from MSCI IPD as of September 2016 For illustrative purposes only. Based on current market conditions, subject to change.

Important information

This document is for Professional Clients only in Dubai, Continental Europe, Ireland and the UK, for Qualified Investors in Switzerland, for Institutional Investors only in the United States, Australia and Singapore, and for Professional Investors only in Hong Kong and in Japan as defined under the Financial Instruments and Exchange Law of Japan. In Canada, the document is intended only for accredited investors as defined under National Instrument 45-106. It is not intended for and should not be distributed to, or relied upon by, the public or retail investors. Please do not redistribute this document.

The views expressed herein are those of Invesco Real Estate professionals based on current market conditions and other factors and are not necessarily those of other Invesco professionals. The views expressed herein do not refer to any specific Invesco product. Target figures, where mentioned, are not the actual allocations of a specific Invesco product. Opinions and forecasts are subject to change without notice. The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. Past performance is not a guide to future returns. Property and land can be difficult to sell, so investors may not be able to sell such investments when they want to. The value of the property is generally a matter of an independent valuer’s opinion.

This document contains general information only and does not form part of any prospectus. It is not an invitation to subscribe for shares in a fund nor is it to be construed as an offer to buy or sell any financial instruments. As with all investments, there are associated inherent risks. The information contained in this document may not have been prepared or tailored for any audience. It does not take into account individual objectives, taxation position or financial needs. Nor does this constitute a recommendation of the suitability of any investment strategy for a particular investor. While great care has been taken to ensure that the information contained herein is accurate, no responsibility can be accepted for any errors, mistakes or omissions or for any action taken in reliance thereon. You may only reproduce, circulate and use this document (or any part of it) with the consent of Invesco.

This material may contain statements that are not purely historical in nature but are “forward-looking statements.” These include, among other things, projections, forecasts, estimates of income, yield and return. These forward-looking statements can be identified by the use of forward looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue,” “target,” “believe,” the negatives thereof, other variations thereon or comparable terminology. All forward-looking statements included herein are based on information available on the date hereof and Invesco assumes no duty to update any forward-looking statement (except as required by law). They are based upon certain beliefs, assumptions and expectations, some of which are described herein. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us. Actual events are difficult to predict, are beyond the issuers’ control, and may substantially differ from those assumed. Accordingly, there can be no assurance that estimated returns or projections can be realized, that forward-looking statements will materialize or that actual returns or results will not be materially lower than those presented. You should not place undue reliance on these forward-looking statements.

This document is issued in: – Australia by Invesco Australia Limited (ABN 48 001 693 232), Level 26, 333 Collins Street, Melbourne, Victoria, 3000, Australia which holds

an Australian Financial Services License number 239916. – Austria by Invesco Asset Management Österreich GmbH, Rotenturmstraße 16-18, A-1010 Wien, Austria. – Belgium by Invesco Asset Management SA Belgian Branch (France), Avenue Louise 235, B-1050 Brussels, Belgium. – Canada by Invesco Canada Ltd., 5140 Yonge Street, Suite 800, Toronto, Ontario, M2N 6X7, Canada. – the Czech Republic by Invesco Real Estate s.r.o., Praha City Center, Klimentska 46, 110 02 Prague 1, Czech Republic. – Denmark, Finland and Norway by Invesco Asset Management SA, 18, rue de Londres, F-75009, Paris, France. – Dubai by Invesco Asset Management Limited, PO Box 506599, DIFC Precinct Building No 4, Level 3, Office 305, Dubai, United Arab Emirates.

Regulated by the Dubai Financial Services Authority. – France by both Invesco Asset Management SA, 18, rue de Londres, F-75009, Paris, authorized and regulated by the Authorité des marchés

financiers in France, and Invesco Asset Management Limited French Branch, 18, rue de Londres, F- 75009,Paris, France. – Germany by Invesco Asset Management Deutschland GmbH, An der Welle 5, D - 60322 Frankfurt am Main. – Hong Kong by Invesco Hong Kong Limited 景順投資管理有限公司, 41/F, Champion Tower, 3 Garden Road, Central, Hong Kong. – Italy by Invesco Asset Management SA Sede Secondaria, Via Bocchetto 6, 20123 Milan, Italy – Ireland by Invesco Global Asset Management DAC, Central Quay, Riverside IV, Sir John Rogerson’s Quay, Dublin 2, Ireland, regulated by the

Central Bank of Ireland. – Japan by both Invesco Asset Management (Japan) Limited and Invesco Global Real Estate Asia Pacific, Inc., Roppongi Hills Mori Tower 14F,

6-10-1 Roppongi, Minato-ku, Tokyo 106-6114, Japan, which holds a Japan Kanto Local Finance Bureau Investment advisers license number 306 and a Japan Kanto Local Finance Bureau Investment advisers license number 583 respectively.

– Luxembourg by both Invesco Real Estate Management S.a r.l., President Building, Avenue JF Kennedy 37A, L - 1855 Luxembourg and Invesco Asset Management SA, 18, rue de Londres, F-75009, Paris, France.

– The Netherlands by Invesco Asset Management S.A. Dutch Branch, J.C. Geesinkweg 999, 1114 AB Amsterdam, The Netherlands. – Singapore by Invesco Asset Management Singapore Ltd, 9 Raffles Place, #18-01 Republic Plaza, Singapore 048619. – Spain by Invesco Asset Management Sucursal en España, Calle Recoletos 15 — Piso1, E - 28001 Madrid, Spain. – Sweden by Invesco Asset Management S.A. Swedish Filial (France), Stureplan 4c, 4th Floor, Stockholm, SE - 114 35 Stockholm, Sweden. – Switzerland by Invesco Asset Management (Schweiz) AG, Talacker 34, CH-8001 Zürich, Switzerland. – the UK by Invesco Real Estate, a division of Invesco Asset Management Limited, 43-45 Portman Square, London, W1H 6LY, UK. Authorized

and regulated by the Financial Conduct Authority. – the United States of America by Invesco Advisers, Inc., Two Peachtree Pointe, 1555 Peachtree Street N.E., Atlanta, Georgia 30309, USA.

II-REHVG-COM-2 10/16 GL342

Invesco contact informationAmsterdam +31 20 561 62 61 Madrid +34 902 510 907 Shanghai +86 21 5208 0868Atlanta +1 404 898 0771 Milan +39 02 88074 1 Singapore +65 6603 9180Beijing +86 10 6655 5800 Munich +49 89 20 60 60 00 Stockholm +46 8463 11 06Brussels +32 2 641 0170 Paris +33 1 56 62 43 72 Sydney +61 2 8231 8700Dallas +1 972 715 7400 Prague +420 227 202 420 Tokyo +81 3 6447 3300Frankfurt +49 69 29 80 70 New York +1 212 278 9000 Vienna +43 1 316 2000Hong Kong +852 3128 6000 Newport Beach +1 949 222 6380 Warsaw +48 22 528 6674London +44 207 543 3501 San Francisco +1 415 445 7558 Zurich +41 44 287 90 00Luxembourg +352 27 11 8000 Seoul +82 2 6330 7307

Telephone calls may be recorded

www.invesco.com

Contact usEmail: [email protected]: www.invesco.com.au/contact

invesco real estate house view global h2 · pdf fileinvesco real estate house view global...

Documents