Michael Torres created the Wilshire Real Estate Securities Index in 1991 to serve as a proxy for direct real estate investment by institutions. The index is widely recognized as the industry’s performance benchmark. Michael has over 25 years of experience in real estate and securities research, and is currently CEO of Adelante Capital Management, a California-based investment advisor that specializes in real estate securities that seeks real estate returns for investors by owning property stocks.
In this Opalesque.TV interview, Michael talks about how owning public real estate securities provides a look into the property market, yielding transparency of the properties and also the transparency of balance sheets, an advantage not shared by the private real estate market, along with liquidity that allow investors to re-balance portfolios. He also discusses his personal experience as a professional real estate investor during the period of crisis and drastic 62% decline of the REIT market from their 2007 peak through Q4 2008.
Michael describes his net asset value approach as “buying buildings for clients”, a strategy that currently yields enormous opportunities as the U.S. real estate market has rebounded to within 5% of its previous 2007 highs and still has room for future growth.
Learn more about:
- A real estate specialist’s insights into the 2008 collapse of the REIT market
- Understanding the lag between public and private real estate markets
- Post-2008 there are really 2 real estate classes: Investment-grade commercial vs. everything else
- Optimistic reality of the U.S. real estate market
- Attractive global real estate opportunities in developed markets
- The value of lease duration and well protected dividends for defensive portfolios
- Listed real estate securities are key for re-balancing portfolios and price discovery
Michael Torres:
Michael A. Torres is a Principal, Chief Executive Officer and portfolio manager of Adelante Capital Management. Mr. Torres joined the firm in February 1995. He has 25 years of real estate and securities research experience. Prior to joining Adelante, Mr. Torres was the Director of Real Estate Research and a portfolio manager for Wilshire Asset Management. At Wilshire, he created the Wilshire Real Estate Securities Index, widely recognized as the industry’s performance benchmark.
Mr. Torres serves on the Board of the UC Berkeley Foundation, the Finance Committee for the Stern Grove Festival Association and on the Advisory Boards for City National Bank, Orchard Partners, Stanford University’s Challenge Success, and UC Berkeley’s Cal Athletics. Mr. Torres is also a member of the YPO Northern California Chapter. Mr. Torres received a B.A. in Architecture and a M.B.A. from University of California, Berkeley.
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Michael Torres created the Wilshire Real Estate Securities Index in 1991 to serve as a proxy for direct real estate investment by institutions. The index is widely recognized as the industry’s performance benchmark. Michael has over 25 years of experience in real estate and securities research, and is currently CEO of Adelante Capital Management, a California-based investment advisor that specializes in real estate securities that seeks real estate returns for investors by owning property stocks.
In this Opalesque.TV interview, Mich
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