Tennessee Consolidated Retirement System has reached the $700m (€644.9m) maximum investment limit for its internally managed real estate investment trust (REIT) portfolio after approving an additional $200m investment.
The $71.3bn pension fund established its in-house public REITs portfolio in March 2018. The long-term plan for the REIT portfolio is to account for 10% of the pension fund’s real estate holdings, which were valued at $7.2bn as of December 2024.
Since its inception, the pension fund’s REIT strategy has achieved an estimated net internal rate of return of 4.88%, and a total profit of $133.4m by the end of 2024, outperforming its benchmark, the NCREIF ODCE Index, the pension fund said.
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