Strategy

MEPT’s portfolio is broadly diversified by geographic region, property type, and investment life-cycle. MEPT’s investment strategy focuses on high performance, sustainable assets in knowledge- and innovation-driven U.S. Primary Markets with walkable urban or dense suburban, transit-served locations and significant barriers to entry. The Fund has a conservative capital structure and targets a leverage level that is in line with that of the ODCE Index.

Industrial

• Continue to maintain an overweight allocation between 40.0% and 43.0%, subject to identifying opportunities with attractive risk-adjusted returns given the highly competitive market
• Acquire and selectively develop high volume, modern distribution facilities situated near major population centers and key intermodal/port facilities, particularly where high concentrations of innovative, knowledge-based workers are driving local and regional economic expansions
• Continue to focus on the primary distribution markets and invest in assets with specific characteristics that users demand

Multifamily

• Fund to maintain an overweight to benchmark while reducing urban high-rise in primary markets in order to increase exposure to select secondary markets, investments in close-in, transit-served locations ("urban-suburban"), and class B assets in A locations with rent upside potential
• Increase exposure to select mid-rise assets and/or non-primary markets

Office

• Target a significant underweight to office due to challenges caused by hybrid/remote work and uncertain economic conditions
• Office is expected to underperform other sectors due to increasing capital needed to maintain and attract tenants; the sector’s expected limited future rent growth will be eroded by heightened TI and free rent

Self-Storage and Other

• Increase self-storage to an overweight allocation between 5.0% and 8.0%
• Self-storage has proven to have resilient returns through economic cycles, characterized by durable demand through economic cycles as potential customers seek space during times of changes
• Increase exposure to Medical Office as a portfolio diversifier

Retail

• Increase exposure to Necessity and Experiential Retail to enhance the Fund’s income return