Griffin Institutional Access Real Estate Fund Surpasses $2.5 Billion in AUM
El Segundo, Calif. (August 27, 2018) – Griffin Capital Company, LLC (“Griffin Capital”) announced today that Griffin Institutional Access Real Estate Fund (NASDAQ: GIREX, GCREX, GRIFX, GLREX, GMREX; the “Fund”) exceeded $2.5 billion in assets under management. The Fund achieved this mark on August 22, 2018.
“Our actively managed private/public strategy and access to high quality institutional real estate investments has led to consistent returns with low volatility and low correlation to the broad markets since the fund’s inception,” said Randy I. Anderson, Ph.D., CRE, President, Griffin Capital Asset Management Company, LLC. “We appreciate the support of our investors as well as our broker-dealer partners and could not be more excited about the future of our platform.”
About Griffin Institutional Access Real Estate Fund
Griffin Institutional Access Real Estate Fund (the “Fund,” NASDAQ: GIREX, GCREX, GRIFX, GLREX, GMREX), a closed-end interval fund registered under the Investment Company Act of 1940, is an actively managed portfolio of private real estate funds and public real estate securities, diversified by property type, geography and fund manager, offering daily pricing and periodic liquidity at net asset value. The Fund will make quarterly offers to repurchase between five percent and 25 percent of its outstanding shares at net asset value. The Fund began reporting on NASDAQ on June 30, 2014, with an initial class A share price of $25.00 and reported a share price of $27.20 for Class A, $26.60 for Class C, $27.41 for Class I, $27.13 for Class L, and $26.96 for Class M, as of August 24, 2018. The Adviser of the Fund is Griffin Capital Advisor, LLC, amajority-owned subsidiary of Griffin Capital Company, LLC.
About Griffin Capital Company, LLC
Griffin Capital Company, LLC (“Griffin Capital”) is a leading alternative investment asset manager with nearly $10.75 billion* in assets under management. Founded in 1995, the privately held firm is led by a seasoned team of senior executives with more than two decades of investment and real estate experience and who collectively have executed more than 650 transactions valued at over $22 billion.
The firm manages, sponsors or co-sponsors a suite of carefully curated, institutional quality investment solutions distributed by Griffin Capital Securities, LLC to investors through a community of partners, including independent and insurance broker-dealers, wirehouses, registered investment advisory firms and the financial advisors who work with these enterprises.
Additional information about Griffin Capital is available at www.griffincapital.com.
*Includes the property information related to interests held in certain joint ventures. As of June 30, 2018.
This is neither an offer to sell nor a solicitation to purchase the securities described herein. Investors should carefully consider the investment objectives, risks, charges and expenses of Griffin Institutional Access Real Estate Fund (the “Fund”). This and other important information about the Fund is contained in the prospectus, which can be obtained by contacting your financial advisor or visiting www.griffincapital.com. The prospectus should be read carefully before investing.
Griffin Institutional Access Real Estate Fund is a closed-end interval fund. Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for no less than 5% of the Fund’s shares outstanding at net asset value. The Fund is only suitable for investors who can bear the risks associated with the limited liquidity of the Fund and should be viewed as a long-term investment.
Griffin Institutional Access Real Estate Fund’s inception date was 6/30/14. As of July 31, 2018, the Fund’s annualized return for load-waived Class A shares is 7.22% since inception and 6.22% for one year. During that period, the S&P 500 had an annualized return of 11.55% and a one-year return of 16.24%. Since inception, the Fund’s load-waived Class A share generated a standard deviation of 2.08% and a sharpe ratio of 3.19. The S&P 500 had a standard deviation of 9.86% and a sharpe ratio of 1.11 during that period.
All performance calculations and metrics are sourced from Morningstar Direct and are based on monthly data. Performance data for Griffin Institutional Access Real Estate Fund uses a load-waived, Class A share and does not reflect a maximum sales charge of 5.75% for Class A shares. Investors of the load waived class A share do not pay a front-end sales load. If the data reflected the deduction of such fees, the performance would be lower. Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. The most recent performance is available at www.griffincapital.com, which includes returns that reflect a maximum sales charge for Class A shares.
Performance reflects management fees and other expenses. Performance also reflects the reinvestment of dividends and distributions.
The Fund has contractually agreed to waive its fees to the extent that they exceed 1.91% for Class A, 2.66% for Class C, 1.66% for Class I, 2.16% for Class L, and 2.41% for Class M. The Expense Limitation Agreement will remain in effect at least through February 1, 2019. Fund returns would have been lower had expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The total gross expense ratio is 2.30% for Class A, 3.05% for Class C, 2.04% for Class I, 2.46% for Class L, and 2.73% for Class M.
The Fund will not invest in real estate directly, but, because the Fund will concentrate its investments in securities of REITs and other real estate industry issuers, its portfolio will be significantly impacted by the performance of the real estate market and may experience more volatility and be exposed to greater risk than a more diversified portfolio. The value of companies engaged in the real estate industry is affected by: (i) changes in general economic and market conditions; (ii) changes in the value of real estate properties; (iii) risks related to local economic conditions, overbuilding and increased competition; (iv) increases in property taxes and operating expenses; (v) changes in zoning laws; (vi) casualty and condemnation losses; (vii) variations in rental income, neighborhood values or the appeal of property to tenants; (viii) the availability of financing and (ix) changes in interest rates and leverage.
The S&P 500 is an index based on market cap of the 500 largest companies having stock listed on the New York Stock Exchange (NYSE) or NASDAQ. Investors cannot invest directly in an index.
Sharpe ratio measures risk-adjusted returns by calculating the excess return (above the risk-free rate) per unit of risk (standard deviation). The higher the ratio, the better the risk-adjusted returns. The average 3-month U.S. Treasury T-bill auction was used as the risk free rate in this material.
Standard deviation measures the average deviations of a return series from its mean, and is often used as a measure of volatility/risk. A large standard deviation implies that there have been large swings in the return series of the manager.
Griffin Institutional Access Real Estate Fund is distributed by ALPS Distributors, Inc. ALPS Distributors, Inc. is not affiliated with either Griffin Capital or any of its affiliates.