October Issue: Indexes & Rankings—2015 Top Owners

CPE researches this year's movers and shakers controlling much of the real estate across the the country and around the globe.

Rank Company Total Portfolio Value ($MM) Properties Owned (2014) Total Owned (MSF) Average Occupancy

1 Lincoln Property Co. $129,032 2,483 82.8 95.0%
2 Hines 42,700 287 129.9 –
3 Heitman 29,618 1,072 152.0 –
4 Invesco Real Estate 24,600 458 99.9 –
5 TIAA-CREF 37,468 294 116.7 –
6 AEW Capital Management L.P. 20,586 395 63.0 83.7%
7 The Inland Real Estate Group of Cos. 6,700 – 29.6 –
8 Essex Property Trust Inc. 21,000 243 57,461 units 96.3%
9 AMLI Residential 4,300 66 22,467 units 94.1%
10 Equus Capital Partners Ltd. 4,200 541 39.9 89.0%
11 KBS 8,982 523 41.2 90.0%
12 CBRE Global Investors 87,100 2,050 – –
13 Northwestern Mutual 7,540 162 52.6 89.1%
14 Mack-Cali Realty Corp. 5,217 283 30.9 84.3%
15 Brookfield Property Partners L.P. – 501 145.7 93.0%
16 Duke Realty 8,000 729 142.3 93.5%
17 Related Cos. 20,000 360 8 MSF, plus 65,000 units 98.0%
18 Kimco Realty Corp. 12,400 754 108.0 95.5%
19 EastGroup Properties Inc. 1,479 307 33.7 95.7%
20 U.S. Realty Advisors L.L.C. – 1,363 8.5 100.0%
21 AvalonBay Communities Inc. 19,388 277 81,606 units 96.0%
22 Camden Property Trust 9,900 168 58,446 units 96.0%
23 Gables Residential 3,290 73 15,039 units 94.3%
24 WNC 6,200 694 47,407 units 96.2%
25 UDR Inc. 13,000 179 46,652 units 95.3%

When to Hold ’Em

By Mike Ratliff

With more than $600 billion worth of assets, the firms on 2015’s list of the Top Owners control much of the real estate across the country and around the globe. While the size of their portfolios continues to expand, the quality of assets and tenants makes these owners truly special.

Average occupancy across all asset classes increased to 92.7 percent, up a healthy 40 basis points from last year’s survey. Though multifamily continues to garner attention due to demographic pressures, office, retail and industrial fundamentals keep improving.

These firms also increased their focus on investing abroad. While smart money flocks to U.S. real estate for safety, U.S. investors are looking overseas for value in emerging markets. Roughly 8.2 percent of their space is international—up from 6.2 percent last year.
The average debt carried on these portfolios is 42.5 percent, in line with last year. But it looks like decision makers have been putting historically low interest rates to use: Just under 25 percent of properties have financing expiring in the next three years, 40 percent have it expiring in five years. Last year, 28 percent of properties had financing expiring within three years and 44 percent over five years. Visit the Research Center for the full list of respondents and CPE Radio for a podcast discussion on the changing nature of ownership and insights into which firms are making big moves.
Methodology

Variables factored into the ranking include information about portfolios, historic performance, size and regional dominance of holdings, occupancy dynamics, class and quality of properties, LEED certification, development plans and other items, adjusted for differences across sectors and locations.