Constructing Alpha REITs in a Climate Disrupted World
Climate Alpha’s product suite guides clients to construct climate-proof REIT portfolios: – the alpha REITs of a climate disrupted world. As climate-driven volatility increases, we believe there is a significant opportunity to create a unique and differentiated investment portfolio that capitalizes on mispriced real estate assets while also steering the market towards opportunistic investments with longer time horizons. REITs are a crucial asset class at the intersection of private, illiquid real
estate and public, liquid securities.
Today’s combination of higher interest rates and climate risk is significantly correcting real estate values across North America. This complex new structural environment suggests that today’s REIT dividends may not be a good predictor of future value. At the same time, a smart REIT strategy can substantially outperform a bearish real
Climate Alpha hedges accelerating climate change through anticipatory price discovery of resilient assets. We offer an opportunity
to be a first-mover and market-maker in the resilient geographies of
the future. Assets held in such portfolios will benefit from the growth
of new demographic, commercial, and industrial hubs as economies
gradually recenter away from over-priced and high-risk markets
towards more stable and affordable locations.
Real estate and infrastructure rank among the top sectors investors
have identified as areas of opportunity amidst climate change.
Site identification and selection for new acquisitions
Investment research and strategy
Relocation strategy for housing, commerce, and industry
Using multiple datasets of REIT property locations, types, and market returns, we provide a quarterly valuation forecast for the Atlas Sustainable REIT Index that covers more than 200 REITs and 150,000+ properties. Climate Alpha’s interactive, customized dashboard allows Atlas Capital to sort and rank buildings according to our Climate Price™ risk-adjusted valuations under multiple scenarios as well as our location specific Resilience Index scores.
Portfolio Price Index
Portfolio Compound Annual Growth Rate (CAGR)
Climate Alpha REIT solutions include
(I) REIT Portfolio Analysis
Leverage Climate Price™ risk-adjusted valuation and return
forecasts from 2023 to 2040 under multiple climate scenarios and
Resilience Index™ risk, vulnerability and readiness scores for
40,000+ U.S. zip codes and Canada.
(II) REIT Sustainability Scores
Benchmark REIT properties and portfolios based on over/under exposure to market performance and resilient geography, and
asset and fund-level rankings to support disposition and
(III) Alpha REIT
Construction of thematic or hybrid REITs using Alpha Finder™ to
filter and screen top-performing locations according to indicators
such as climate resilience, renewable energy, municipal debt,
infrastructure spending, demographics, labor market trends, and
dozens of other variables, with further stress-testing through our