AEW Capital Management
2 Seaport Lane
Boston, MA 02210
For over 40 years, AEW Capital Management, L.P. (AEW) has provided real estate investment management services to investors worldwide. One of the world’s largest real estate investment advisors, AEW and its affiliates manage $90.7 billion of property and securities in North America, Europe and Asia (as of June 30, 2023). Grounded in research and experienced in the complexities of the real estate and capital markets, AEW actively manages portfolios in both the public and private property markets and across the risk/return spectrum. AEW and its affiliates have offices in Boston, Los Angeles, Denver, London, Paris, Düsseldorf, Hong Kong, Seoul, Singapore, Sydney and Tokyo, as well as additional offices in seven European cities. For more information please visit www.aew.com.
As of June 30, 2023. AEW includes (i) AEW Capital Management, L.P. and its subsidiaries and (ii) affiliated company AEW Europe SA and its subsidiaries. AEW Europe SA and AEW Capital Management, L.P. are commonly owned by Natixis Investment Managers and operate independently from each other. Total AEW AUM of $90.7 billion includes $41.9 billion in assets managed by AEW Europe SA and its affiliates, $5.3 billion in regulatory assets under management of AEW Capital Management, L.P., and $43.5 billion in assets for which AEW Capital Management, L.P. and its affiliates provide (i) investment management services to a fund or other vehicle that is not primarily investing in securities (e.g., real estate), (ii) non-discretionary investment advisory services (e.g., model portfolios) or (iii) fund management services that do not include providing investment advice. Staff, offices, and clients include AEW Capital Management, L.P. and AEW Europe SA and their respective subsidiaries.
Today's topic is CRE debt. We're joined by Dean Dulchinos, head of Debt Portfolio Management, and Justin Pinckney, head of private debt at AEW.
The combination of continued moderation in inflation and higher than expected second-quarter real GDP growth has buoyed both investor and consumer sentiment with growing expectations that the Federal Reserve may be approaching the end of the credit tightening cycle and the U.S. economy may avoid recession and achieve a so-called “soft landing.”
The first quarter saw the continuation of two interrelated trends, tightening credit conditions and slowing economic growth. With respect to the former, the Federal Reserve twice increased the overnight lending rate by twenty-five basis points during the quarter bringing the effective Fed Funds rate to 4.83% at the end of March, almost five hundred basis points above the year-prior level and the largest 12-month increase in the benchmark rate since 1982.