North Carolina Retirement Systems is planning to increase its exposure to public real estate investment trusts (REITs), the pension fund disclosed in a meeting document.
“We are roughly at our 8% target for real estate now. How much we commit in the future will depend on a lot of factors. These include the overall plan denominator, how much money comes back to us each year and how well our existing investments perform,” North Carolina Retirement said.
The pension fund last invested in public REITs in the third quarter of last year with a $300m allocation to a global REITs separate account with BlackRock.
North Carolina intends to add some exposure to both high-growth and low-capex sectors like industrial, multifamily, self-storage and small strip centre retail.
The pension fund also expects to have exposure in high capex and macro-challenged real estate sectors like traditional offices and retail and hotels.
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