Griffin Institutional Access Real Estate Fund Generates Second Highest Quarterly Return Since Inception
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EL SEGUNDO, Calif.--(BUSINESS WIRE)-- Griffin Capital Company, LLC announced today that Griffin Institutional Access Real Estate Fund (the “Fund”) generated its second highest quarterly return since inception.
“We are pleased with the Fund’s performance and believe we have delivered on our objective of providing favorable risk-adjusted returns with low correlation to the broader markets,” said Dr. Randy Anderson, Chief Executive Officer of Griffin Capital Asset Management Company. “We were able to generate this attractive performance despite the backdrop of rising rates, which has proven to be a headwind for other income producing asset classes, such as traditional fixed income.”
Griffin Institutional Access Real Estate Fund’s Class I shares (NASDAQ: GRIFX) generated a positive return of 3.51% during the first quarter of 2021; this outsized performance capped a trailing one-year period during which the Fund’s Class I shares (NASDAQ: GRIFX) generated a 6.48% total return. Since inception, Griffin Institutional Access Real Estate Fund has generated positive returns in 25 of 27 quarters with annualized volatility (standard deviation1) of 3.09%, which approximates the Bloomberg Barclays U.S. Aggregate Bond Index (3.17%) as of March 31, 2021.
“We continue to see compelling opportunities driven by, in our opinion, secular growth trends. As of December 31, 2020, over 75% of the Fund’s private equity portfolio was allocated to opportunities within industrial, multifamily, and specialty (life sciences) properties designed to take advantage of strong potential growth,” said Dr. Anderson. “We believe the combination of relatively low interest rates and a recovering economy may provide a supportive environment for the real estate sector moving forward.” Thus far in 2021, the Fund has observed an uptick in investor demand, which we believe has been driven by the need for attractive and tax-efficient durable income. The Fund has generated significant outperformance relative to traditional fixed income as rates have risen. Since June 30, 2020, the Fund’s Class I shares (NASDAQ: GRIFX) have generated a 7.89% return, outperforming traditional fixed income (Bloomberg Barclays Aggregate Bond Index) by 10.01% through March 31, 2021.
- Standard Deviation: Measures the average deviations of a return series from its mean and is often used as a measure of volatility/risk. A large standard deviation implies that there have been large swings in the return series of the manager.
Performance data quoted represents past performance. Past performance is no guarantee of future results and investment returns and principal value of the Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted.
About Griffin Institutional Access Real Estate Fund
Griffin Institutional Access Real Estate Fund (the “Fund,” NASDAQ: GIREX, GCREX, GRIFX, GLREX, GMREX), a closed-end, interval fund registered under the Investment Company Act of 1940, is an actively managed portfolio of private real estate funds and public real estate securities, diversified by property type and geography, offering daily pricing and periodic liquidity at net asset value. The Fund will make quarterly offers to repurchase between five percent and 25 percent of its outstanding shares at net asset value. The Fund is advised by Griffin Capital Advisor, LLC (“GCA”). GCA is registered as an investment adviser with the U.S. Securities and Exchange Commission (the “SEC”) pursuant to the provisions of the Investment Advisers Act of 1940, as amended. GCA is an indirect majority-owned subsidiary of Griffin Capital Company, LLC. Registration with the SEC does not constitute an endorsement by the SEC nor does it imply a certain level of skill or training.
About Griffin Capital Company, LLC*
Griffin Capital is a leading alternative investment asset manager headquartered in El Segundo, California with offices in Irvine, California, Phoenix, Arizona, and Greenwich, Connecticut. Founded in 1995, Griffin Capital has owned, managed, sponsored or co-sponsored investment programs encompassing over $19 billion in assets. Griffin Capital’s senior executives and employees have co-invested over $300 million in its sponsored investment verticals. The privately held firm is led by a seasoned team of senior executives each with more than two decades of investment and real estate experience and who collectively have executed transactions valued in excess of $21 billion.
The firm manages, sponsors or co-sponsors a suite of carefully curated, institutional quality investment solutions distributed by Griffin Capital Securities, LLC to retail investors through a community of partners, including independent and insurance broker-dealers, wirehouses, registered investment advisory firms and the financial advisors who work with these enterprises.
* As of December 31, 2020.
Additional information is available at www.griffincapital.com.
This is neither an offer to sell nor a solicitation to purchase any security. Investors should carefully consider the investment objectives, risks, charges and expenses of Griffin Institutional Access® Real Estate Fund. This and other important information about the Fund is contained in the prospectuses, which can be obtained by visiting www.griffincapital.com. Please read the prospectuses carefully before investing. Griffin Capital and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
Past performance is not a guarantee of future results. Data source: Morningstar Direct. Performance reflects the reinvestment of dividends and other distributions and reflects applicable fund management fees and other expenses. As of March 31, 2021, Griffin Institutional Access Real Estate Fund’s Class I share (NASDAQ: GRIFX) had a since inception annualized return of 6.06%, a five-year annualized return of 5.10%, and a one-year return of 6.48%. Griffin Institutional Access Real Estate Fund's inception date was 6/30/14. Because Class I shares (NASDAQ: GRIFX) commenced investment operations on 8/10/15, the performance information shown above is “PRO FORMA” performance for the period of 6/30/14 through 8/10/15 based on the performance information of the load-waived Class A shares (NASDAQ: GIREX), which have a different expense structure than the Class I shares. For the period of 6/30/14 through 8/10/15, performance information of the Fund's Class A shares has been adjusted to reflect the expenses applicable to the Class I shares since the Class I shares have a lower expense ratio than the expense ratio of the Class A shares. The performance of the Class A shares has been adjusted to remove shareholder servicing expenses and any voluntary waiver or reimbursement of Fund expenses by the investment adviser to the Fund that may have occurred during periods prior to the commencement of operations of the Class I shares. Since both the Class A shares and Class I shares are invested in the same portfolio of securities, the Fund’s Class I shares would have returns similar to those of the Class A shares. In that respect, the returns would differ only to the extent that the classes do not have the same expenses. Actual performance for Class I shares is shown from 8/11/15 to the dates listed above. Investing in the Fund involves risks, including the risk that you may receive little or no return on your investment or that you may lose part or all of your investment. The ability of the Fund to achieve its investment objective depends, in part, on the ability of the Adviser to allocate effectively the assets of the Fund among the various securities and investments in which the Fund invests. There can be no assurance that the actual allocations will be effective in achieving the Fund’s investment objective or delivering positive returns. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. The most recent performance is available at www.griffincapital.com or by calling 888.926.2688.
Per Griffin Institutional Access Real Estate Fund's prospectus dated February 1, 2021, the total annual expense ratio is 1.75% for Class I shares. The Adviser and Fund have entered into an expense limitation agreement until at least February 1, 2022 under which the Adviser has contractually agreed to waive its fees and to pay or absorb the ordinary annual operating expenses of the Fund (including offering expenses, but excluding taxes, interest, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) to the extent that they exceed 1.66% for Class I shares. The Fund return does not reflect the deduction of all fees, including third-party brokerage commissions or third-party investment advisory fees paid by investors to a financial intermediary for brokerage services. If the deduction of such fees was reflected, the performance would be lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Due to these restrictions, an investor should consider an investment in the Fund to be of limited liquidity. The Fund is suitable only for investors who can bear the risks associated with the limited liquidity of the Fund and should be viewed as a long-term investment. Investing in the Fund is speculative and involves a high degree of risk, including the risks associated with leverage and the risk of a substantial loss of investment. There is no guarantee that the investment strategies will work under all market conditions. Investors in the Fund should understand that the net asset value (“NAV”) of the Fund will fluctuate, which may result in a loss of the principal amount invested. The Fund’s investments may be negatively affected by the broad investment environment and capital markets in which the Fund invests, including the real estate market, the debt market and/or the equity securities market. The value of the Fund’s investments will increase or decrease based on changes in the prices of the investments it holds. This will cause the value of the Fund’s shares to increase or decrease. The Fund is not intended to be a complete investment program.
This material may contain certain forward-looking statements. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” or other similar words. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. As a result, investors should not rely on such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to: uncertainties relating to changes in general economic and real estate conditions; uncertainties relating to the implementation of our investment strategy; uncertainties relating to capital proceeds; and other risk factors as outlined in the Fund’s prospectus, statement of additional information, annual report and semi-annual report filed with the Securities and Exchange Commission. This material has been distributed for informational purposes only. The views and information discussed in this commentary are as of the date of publication, are subject to change without notification of any kind, and may not reflect the writer’s current views.
Fund holdings and allocations are subject to change without notice. The opinions and information contained in this material are provided for informational purposes only and represent the current good faith views of the contributor at the time of preparation and should not be relied upon as investment advice regarding a particular investment or markets in general. This material represents views as of the date noted herein and is subject to change without notice of any kind. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the fund(s) or any securities or any sectors mentioned herein. The subject matter contained herein has been derived from several sources believed to be reliable and accurate, but not guaranteed, at the time of compilation. Griffin Capital and its affiliates do not accept any liability for losses either direct or consequential caused by the use of this information. There is no guarantee that the investment strategies will work under all market conditions. An investment in Griffin Institutional Access Real Estate Fund is not a direct investment in real estate and the fund does not own the properties discussed herein. The properties discussed herein are owned by certain of the underlying private investment funds in which the fund is invested.
Senior Vice President
Griffin Capital Company
Source: Griffin Capital Company, LLC
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