Florida State Board of Administration (SBA) has outlined its real estate investment plan for 2023 to help manage the portfolio towards a 10% allocation target, according to the pension fund’s document.
Florida SBA has $21.1bn (€19.5bn) or 12.4% of total plan assets invested in real estate. The pension fund’s investment policy allows for the real estate portfolio to be in a range of 4% to 16%.
The current overallocation to real estate is due to a strong performance in private real estate and a decline in Florida SBA’s total plan assets.
The actual amount planned for real estate investment in 2023 was not disclosed in the meeting document, but Florida SBA revealed it would be allocating capital to its existing core separate account relationships and will also invest in non-core via funds or other investment opportunities.
The pension fund stated that it also plans to maintain its global diversification for real estate, which is currently split with 93% in the US and 7% non-US real estate exposure.
In 2022, Florida SBA invested $918m in acquisitions and invested $240m through new fund commitments. The pension fund’s disposal during the period amounted to $124m.
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