Prudential Real Estate Investors, the estate investment
management and advisory unit of
Prudential Financial, Inc.
) has expanded its marketing team. The unit has recruited Dennis
Martin managing director who will also be heading the U.S.
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Prudential's expansion of its PREI marketing team is a strategic
step in an effort to take advantage of the growth opportunities
brewing in the rebounding real estate market in the U.S.
Commercial real estate which is producing solid returns relative
to other investment options.
This Commercial real estate growth is despite the improvement in
fundamentals being slow. Moreover U.S. commercial real estate is
seen as a safe haven by global investors and demand for prime
assets remains far greater than supply.
After being a drag on the economy for several years, the housing
market should turn into a source of growth. S&P/Case-Shiller1
Home Price Indices, the leading measure of U.S. home prices,
showed that home prices had risen 4.3% in the 12 months ending in
October. House prices are expected to continue to climb through
the next year.
In October 2012, PREI raised $805 million for a fund investing in
U.S. real estate debt.
PREI has been investing in real estate on behalf of institutional
clients since 1970, with gross assets under management of USD
$51.2 billion and net asset value of $34.6 billion, as of
September 30, 2012.
Prudential Financial will release its fourth quarter 2012
earnings on Wednesday, February 6, 2013, after the market closes.
The Zacks Consensus estimates earnings of $1.75 per share were
down 11.3% from the actual earnings of $1.97 per share recorded
in the year ago quarter.
Prudential's stock retains a Zacks #3 Rank (Hold), we also
maintain our Neutral recommendation on the company. Peers
American International Group Inc.
) also carry our long term Neutral recommendation.