Summary

• The PGIM U.S. Real Estate Fund outperformed the benchmark, the FTSE NAREIT Equity REIT Index, during the first quarter.
• Within North America, strong stock selection in the storage sector, along with an underweight to gaming, were the main contributors to outperformance during the period.
• We slightly reduced our apartment overweight, largely as the result of the privatization of Veris Residential.

Market Review

North America

Looking ahead, our outlook for U.S. real estate investment trusts (REITs) remains constructive, supported by improving relative valuations, stable fundamentals, and growing private market validation. We continue to favor property types with strong structural demand drivers and limited