TCW Global Real Estate Fund Q3 2025 Commentary
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The TCW Group36 FollowersFollow5ShareSavePlay(30min)CommentsSummaryThe TCW Global Real Estate Fund, I Share Class generated a return of +2.37% (net of fees) during the quarter, underperforming the S&P Global REIT Index gain of +4.50%.Our overweight exposure to Diversified Real Estate Activities contributed positively while the overweight in Telecom Tower REITs detracted from relative performance.Looking forward, we expect the equity market to remain data dependent, with investor attention increasingly focused on whether earnings growth in 2026 can sustain current valuation levels. Pawel Kacperek/iStock via Getty Images Performance The TCW Global Real Estate Fund, I Share Class (TGREX), (the “Fund”) generated a return of +2.37% (net of fees) during the quarter, underperforming the S&P Global REIT Index gain of +4.50%. Our overweight exposure to Diversified Real Estate ActivitiesThis article was written byThe TCW Group36 FollowersFollowTCW is a leading global asset management firm with more than five decades of investment experience and a broad range of products across fixed income, equities, emerging markets, and alternative investments. TCW’s clients include many of the world’s largest corporate and public pension plans, financial institutions, endowments and foundations, as well as financial advisors and high net worth individuals. Note: This account is not managed or monitored by TCW, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use TCW's official channels.Quick InsightsWhat forward drivers support a constructive outlook on real estate equities?Supportive supply/demand dynamics, improving sector sentiment, and expectations for further rate cuts underpin the outlook, with secular growth themes like digital infrastructure and AI offering additional tailwinds.How does current portfolio positioning address valuation and macro risks?The fund emphasizes companies with durable business models, recurring free cash flow, and disciplined capital allocation to navigate elevated valuations and macro uncertainties such as policy shifts and tariff disputes.What were the most material portfolio changes and their rationale this quarter?I reallocated from Simon Property to Kimco Realty for more defensive retail exposure, consolidated gaming holdings into GLPI for near-term catalysts, and exited PotlatchDeltic due to weakening housing data.Recommended For You