With its investor-friendly approach to core commercial real estate exposure, this 40 Act Fund offers individual investors the opportunity to access Clarion's highly experienced team
The Fund has delivered strong yields, diversification, and a hedge against inflation with competitive fees and conservative leverage
NEW YORK, (December 5, 2022) – Leading real estate investment manager Clarion Partners is celebrating the three-year anniversary of the launch of the Clarion Partners Real Estate Income Fund Inc. (“the Fund") an innovative fund designed to provide investors of all types and sizes with access to a portfolio of research-backed institutional quality real estate holdings managed by Clarion's industry-leading team.
Clarion Partners, an independent investment manager of Franklin Templeton, has been a leader in building and managing private real estate portfolios for some of the world's largest institutional investors for more than 40 years. As of September 30, 2022, the firm has more than $83.5 billion in real estate assets under management. The firm's overall philosophy, which centers around the vision, judgment and execution to generate value for its investors, is the same approach underpinning the Clarion Partners Real Estate Income Fund.
“Our goal in launching the Clarion Partners Real Estate Income Fund was to provide financial advisors and individual investors with a meaningful new choice so they could better build out their core real estate holdings. For too long, the 'democratized' options meant exposure to sub-optimal properties, high fees, long lockups, and an overreliance on leverage. Our Fund continues to provide solutions for each of those issues, and we're thrilled to be marking this milestone and continuing to educate the marketplace about the benefits of thoughtfully constructed direct real estate exposure," said Richard Schaupp, Clarion Partners Managing Director and Portfolio Manager for the Fund.
Since its launch in September 2019, the Fund has delivered an annualized return of 14.2% net of fees, and as of October 2022, the Fund has delivered a distribution rate of 5.23%. (See full historical performance below.)1 Investors and advisors have been drawn to the Fund's highly differentiated approach, offering investors ease of access as a 40 Act vehicle, downside risk management with an investment strategy utilizing conservative leverage, and strong relative performance with very competitive fees.
“While other approaches to providing direct real estate exposure have morphed to become more private equity-like than private real estate, with this Fund we have stayed true to what has made Clarion such a valued partner for so many institutional investors for the past 40 years," said Janet Souk, Senior Vice President and Portfolio Manager. “Our disciplined approach to direct real estate investment has anchored us through both smooth markets and periods of heightened volatility as we are in now and has been the main driver of our success."
The Fund's portfolio is made up of holdings in those real estate sectors that form the core of Clarion's experience and expertise, including industrial, multifamily, and life sciences. Clarion has been investing in each of those sectors for years, and regularly publishes research designed to educate investors and help them understand the most meaningful trends shaping the real estate space in both the short- and long-term, with samples available here.
For more information about the Clarion Partners Real Estate Income Fund, please visit www.cpreif.com.
This article is provided by Franklin Distributors, LLC.
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About Clarion Partners Real Estate Income Fund Inc. (CPREIF)
CPREIF offers individual investors direct access to a portfolio of privately-held, income-producing commercial real estate properties through an innovative investment fund driven by Clarion's deep real estate expertise. CPREIF is a non-diversified, closed-end management investment company that continuously offers its common stock. The fund's investment manager, Legg Mason Partners Fund Advisor, LLC is an indirect, wholly owned subsidiary of Franklin Resources, Inc. (“Franklin Resources") and the fund's investment sub-adviser, Clarion Partners, is an indirect, majority-owned subsidiary of Franklin Resources. In addition, the fund's securities sub-adviser, Western Asset Management, also is an indirect wholly owned subsidiary of Franklin Resources. Hard copies of the fund's complete audited financial statements are available free of charge upon request.
About Clarion Partners
Clarion Partners, an SEC registered investment adviser with FCA-authorized and FINRA member affiliates, has been a leading U.S. real estate investment manager for 40 years. Headquartered in New York, the firm maintains strategically located offices across the United States and Europe. With $83.5 billion in total assets under management, Clarion Partners offers a broad range of real estate strategies across the risk/return spectrum to its more than 500 domestic and international institutional investors. More information about the firm is available at www.clarionpartners.com.
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 countries. Franklin Templeton's mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers boutique specialization on a global scale, bringing extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has 75 years of investment experience and approximately $1.3 trillion in assets under management as of October 31, 2022. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.