New York State Teachers’ Retirement System (NYSTRS) plans to allocate up to $1.5bn (€1.29bn) for real estate equity in 2026.
The pension fund’s new target, disclosed in a board document by consultant StepStone, marks an increase over the $1.2bn pacing amount approved for 2025, during which the pension has so far approved only $300m worth of commitments.
The pension fund’s most recent real estate investment was a $150m commitment to the Starwood Distressed Opportunity Fund XIII in the third quarter of the year. The deal was partially offset by a $32.3m sale of the Baltimore Industrial Properties portfolio and a $65m withdrawal from its domestic real estate investment trust portfolio.
For 2026, NYSTRS plans to increase industrial and non-premium residential exposure. The pension fund will also maintain its focus on retail and seek to add high-demand niche sectors like healthcare, senior housing, and data centres.
Following its inaugural infrastructure investment this year, a commitment to DigitalBridge III within its real estate portfolio, NYSTRS intends to continuously evaluate top infrastructure managers that cover the entire risk spectrum.
To read the latest IPE Real Assets magazine click here.
