July 25, 2011

URDANG Recommends Investors Consider Holding Both REITS and Private Real Estate


Report from BNY Mellon Investment Manager Praises Liquidity and Income Benefits of REITS and Opportunistic Nature of Private Holdings

PLYMOUTH MEETING, Pa. and LONDON, July 25, 2011 — Institutional real estate investors should consider including both real estate investment trusts (REITS) and private real estate in their portfolios as both provide distinct advantages, according to a report from URDANG, the real estate investment manager and part of BNY Mellon Asset Management.

REITS can provide higher income, relatively low transaction costs and liquidity; while private real estate allocations can focus on opportunistic exposure to specific markets, according to the URDANG paper, Public and Private Real Estate:  Room for Both in a Diversified Portfolio.

"We believe that each type of real estate investment has a key role to play and there is room for both in a well-balanced investment portfolio," said E. Todd Briddell, president and chief investment officer of Urdang Capital Management, which oversees URDANG's private investments and a co-author of the report.

Directly owned real estate allows investors to target specific markets, property types, strategies and business plans by purchasing individual buildings on a case-by-cases basis, according to the report.   However, the report adds that these investments could come with risks such as the loss of an important tenant or unexpected expenses. Investing through REITS provides transparency, as share prices are readily available, and are generally highly liquid, enabling investors to adjust their weighting to a particular region or strategy, the report notes.  It also pointed out that REITS generally have a low correlation to bonds and can provide attractive dividend income.

Here is a link to the paper:  http://www.urdang.com/core/library/documents/Public_v_Private_URDANG_res.pdf

Notes to Editors:

Founded in 1987 with an exclusive focus on institutional investment grade real estate, URDANG offers a variety of strategies and products, managing approximately $2.6 billion in public real estate securities through Urdang Securities Management, Inc. and approximately $3.0 billion in debt and private equity real estate investments (gross) through Urdang Capital Management, Inc. for institutional investors and high net worth individuals throughout global markets and across public and private capital sectors.  URDANG's research-driven process combines top down economic analysis and market/country selection with bottom up underwriting of properties, companies and management teams to seek high, risk-adjusted returns.  It is one of the investment boutiques of BNY Mellon Asset Management.

BNY Mellon Asset Management is one of the world's leading asset management organizations, encompassing BNY Mellon's affiliated investment management firms and global distribution companies. Information about BNY Mellon Asset Management can be found at www.bnymellonam.com.

BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets.  BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, offering superior investment management and investment services through a worldwide client-focused team.  It has $26.3 trillion in assets under custody and administration and $1.3 trillion in assets under management, services $11.8 trillion in outstanding debt and processes global payments averaging $1.7 trillion per day.  BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK).  Additional information is available at www.bnymellon.com and through Twitter @bnymellon.

All information source BNY Mellon Asset Management at June 30, 2011.  This press release is qualified for issuance in the UK and US and is for information purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorised. This press release is issued by BNY Mellon Asset Management (US) and BNY Mellon Asset Management International Limited (ex-US) to members of the financial press and media and the information contained herein should not be construed as investment advice. Past performance is not a guide to future performance. Registered office of BNY Mellon Asset Management International Limited: BNY Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England no. 1118580. Authorised and regulated by the Financial Services Authority

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