- Brookfield Real Estate Income Trust, a $2.4B property fund for wealthy investors owned by Brookfield Asset Management ( NYSE: BAM ), turned in its second straight monthly decline in December 2022 as higher borrowing costs continue to weigh on property values.
- Specifically, Brookfield REIT slumped 1.6% in December followed by a 1.9% drop in November, according to a recent SEC filing . Since its inception in 2019, though, the fund climbed 15.1%.
- “Throughout 2022, third-party valuation firms began adjusting assumptions regarding property valuations that are a key component of our net asset value calculation, leading to some recent downward valuation movements in our portfolio,” Brookfield REIT said, while noting its operating performance is still going strong.
- Higher interest rates combined with an increasingly uncertain economic outlook are hampering property funds' returns across the board. For instance, Blackstone's ( BX ) $70B real estate fund recently limited withdrawals after receiving redemption requests that exceeded its quarterly limit.
For further details see:
Brookfield Asset Management's $2.4B property fund posts second straight monthly slump