Module 3: Real Estate Portfolio & Risk Management

'Portfolio management essentially consists of three major activities: asset allocation, shifts in weighting across major asset classes, and security selection within asset classes. To minimize risk, investment theory asserts that investors need to diversify. The four quadrant model of real estate investment in particular offers a framework for investment managers to take positions across real estate public and private, debt and equity markets.Focusing on indirect real estate as an investment asset class, this course is structured around the goal of a portfolio manager, which is to assemble various securities into portfolios that address investor needs (which are often defined in terms of risk) and then to manage those portfolios so as to maximize returns for investment risk undertaken. Compared with the traditional method of investing directly in real estate, real estate?backed securities offer investors an indirect route to take equity and debt interests in real estate. Real estate investment trusts (REITs) in particular allow investors to participate in a portfolio of properties that may be geographically diversified and professionally managed.'