State Teachers Retirement System (STRS) Ohio is planning to rebalance its real estate portfolio for the 2027 fiscal year, according to the pension fund’s investment plan for next year.
The fiscal year for STRS Ohio, one of the largest public pension funds in the US, starts on 1 July.
The fund plans to prioritise investing new capital in residential apartment assets and industrial properties while also look further at opportunities in both necessity-based and grocery-anchored retail. STRS Ohio will also look to reduce its exposure to office assets.
Any planned new investments will concentrate on core assets, focusing on durable income and cashflow rather than new developments.
The $108.3bn (€94.8bn) pension fund anticipates it will keep its investments in real estate close to its 8% neutral allocation for the sector. Up until the end of April this year, it had invested 7.7% of the overall fund in real estate.
STRS Ohio represents one of a limited number of public pension funds that invest directly in single-property transactions without the assistance of outside managers.
However, the pension fund does have an investment strategy that also allows placing capital in commingled funds on a global basis, which can include commitments in assets located in the US and Europe.
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