In this Morningstar Institutional Equity Series webinar, our speakers explain the increased usage and prevalence of ESG, its benefits in the current market landscape and the value it will add to PitchBook public company profiles.
Companies with greater ESG risk are less likely to receive wide economic moats, while also being prone to greater uncertainty ratings
At present, our most overvalued companies—1-star stocks—carry considerably lower total ESG risk versus other star-rating cohorts, suggesting investors may be paying a high price to own firms with positive ESG credentials
We view the greatest ESG risk in the energy and utilities sectors, and the lowest in technology and real estate
Real Estate Investment and Capital Markets examines at an intermediate to senior level the intersection of real estate space markets and real estate capital markets by exploring in depth the Four Quadrants of Real Estate Finance: (1) private debt, (2) public debt, (3) private equity, and (4) public equity, and their application to real estate space markets, as well as exploring derivative markets that involve real estate.
Property has long been one of the most favourable options for investors. As an asset class, it has performed well over the long-term. As an investment proposition, its premise remains relatively straightforward to understand. Historically popular and increasingly versatile, property affords investors with the ability to tailor investments to their specific financial ambitions - and that’s particularly the case today, especially with the various technology platforms available.
The adoption of cryptocurrencies and the emergence of blockchain platforms have made real estate tokenization a potential capital-raising option. With tokenization, ownership interests in real estate assets can be more immediately bought and sold, but tokenization requires a thorough understanding of the technology, the offering process, and the regulatory issues involved.
Investors typically invest in real estate through an LLC or limited partnership that owns an underlying property. With tokenization, LLC or LP interests are in the form of tokens that can be traded or used as collateral in smart contracts. The issuer must determine the number and type of tokens and select an exchange platform for trading.
The issuer must also decide whether a security is being offered and registration is required. Offering documents may include operating agreements, subscription agreements, and a private placement memorandum. Offerings must also comply with KYC requirements and have appropriate protection of user data.
Tokens should have built-in compliance features such as restrictions on transfers and secondary trading. Issuers will also need to determine how distributable cash will be paid (perhaps using stablecoins or other digital currency).
Listen as our authoritative panel discusses these and other matters associated with commercial real estate tokenization.