Why Real Estate May Remain Hot MODERATOR Jay Rollins, President & CEO JCR Capital PANELISTS Burl East American Assets Capital Advisers CEO & PM of Altegris/AACA Terrell Gates,J.D., Founder & CEO Virtus Real Estate Michael Schwaab, Senior Director, Global Real Estate TIAA Global Asset Management
Why Real Estate May Remain Hot MODERATOR Jay Rollins, President & CEO JCR Capital PANELISTS Michael Schwaab, Senior Director, Global Real Estate TIAA Global Asset Management
Ever wanted to go back to college?
Significant obsolescence remains in student housing stock
Sector and characteristics comparison
Average Cap Rate (Yield) Rolling Four-Quarter Income Returns
in higher wages and lower jobless rates Unemployment rates and median weekly earnings across educational attainment levels (2013) Unemployment Rate (%) Professional degree Master s degree Bachelor s degree Associate s degree High school diploma Less than high school Sources: Bureau of Labor Statistics, Current Population Survey, as of March 2014; TIAA
General increasing propensity to immediately enroll in college High school completers immediately enrolling in college (%) 75 70 Millennials 66% of high school completers immediately enrolled in college 65 60 55 Boomers 50 45 Source: US Department of Commerce, Census Bureau, Current Population Survey. College enrollment as of Oct. of each year for individuals age 16-24 who completed high school in the preceding 12 mos. As of October 2013; table prepared July 2014.
Postsecondary degree-granting institution enrollments (millions) 25 20 15 10 5 0 $9,410* (public in-state avg. annual tuition; ~30% of private non-profits) $32,405* (private non-profit avg. annual tuition) Private Public Total Recession *Average undergraduate tuition & required fees, four-year universities Sources: Enrollment data: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS), Fall Enrollment Survey (IPEDS-EF:86 99); IPEDS Spring 2001 through Spring 2013, Enrollment component, as of October 2013; and Enrollment in Degree-Granting Institutions Projections Model, 1980 through 2023, as of January 2014. Tuition data: The College Board, Annual Survey of Colleges; Table 1A. Average Published Charges (Enrollment- Weighted) for Full-Time Undergraduates by Sector, 2015-16
Portfolios can benefit from owning assets with cash flows that behave differently during economic cycles. During the most recent U.S. economic recovery, select schools outperformed the total U.S. enrollment trend with positive growth of 1.8% between 2010 and 2014
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Why Real Estate May Remain Hot MODERATOR Jay Rollins, President & CEO JCR Capital PANELISTS Terrell Gates,J.D., Founder & CEO Virtus Real Estate
Why Real Estate May Remain Hot MODERATOR Jay Rollins, President & CEO JCR Capital PANELISTS Burl East American Assets Capital Advisers CEO & PM of Altegris/AACA