WASHINGTON, DC--(Marketwired - Aug. 3, 2016) - Five students from Texas Christian University ("TCU") have been declared the winners of the Real Confidence™ University Portfolio Challenge I, ending the first year-long competition in which over 90 students from 15 universities gained hands-on learning experience in public and private commercial real estate investing. The TCU student team managed the best portfolio with a return just short of 35 percent and won the $50,000 prize.
Each university team allocated $1 billion in theoretical capital among a variety of commercial real estate investment opportunities found within the public and private equity and the public and private debt sectors. The performance of each sector's weighted investment selection was calculated with its respective benchmark return data provided by NAREIT®, NCREIF®, Markit® and Giliberto-Levy Commercial Mortgage Performance Index(SM).
"We are excited to participate in this challenge and to see how the students invested their hypothetical capital," said Robert Courteau, Chief Executive Officer of Altus Group. "We are committed to supporting future leaders and industry professionals and this challenge provides a great opportunity for students to gain a broader perspective of real estate investment."
TCU's winning strategy focused on listed REITs, primarily in the self-storage and industrial segments. The students assumed that the performance of self-storage would remain strong as consumers, particularly millennial renters, need storage as apartment space can be limited. The students expected the industrial sector would benefit from e-commerce and economic growth. TCU's total return results were an impressive 34.68 percent, compared with the University Portfolio I index at 17.14 percent, or the broader volatile S&P 500 at only 1.74 percent.
"This competition developed interest and taught skill in real estate investment among students who may soon be investors and industry leaders," said Steven A. Wechsler, President and CEO of NAREIT. "They will join the workforce with a better understanding of the important role that real estate, including investments in both listed and unlisted markets, play in well-balanced investment portfolios."
"This unique contest provided an exciting way to see how students choose their selections from across the quadrants of real estate investing," said Peter Steil, CEO, NCREIF. "It was intriguing to observe the strategies and choices of our next generation of leaders and investors performed against one another. We were delighted to participate in a program that takes education from the text books to real life."
Below are the final portfolio returns of the student teams that participated in the Real Confidence University Portfolio Challenge I:
| Rank | University | Final |
| 1 | Texas Christian University | 34.68% |
| 2 | University of Chicago | 30.90% |
| 3 | Middle Tennessee State | 21.45% |
| 4 | Georgia State University | 19.23% |
| 5 | University of Denver | 18.19% |
| 6 | Johns Hopkins | 17.77% |
| 7 | Lehigh University | 17.67% |
| 8 | University of San Diego | 17.36% |
| UPC I Index | 17.14% | |
| 9 | Texas A&M | 16.63% |
| 10 | College of Charleston | 13.87% |
| 11 | Georgetown University | 12.45% |
| 12 | University of Wisconsin | 12.45% |
| 13 | Penn State University | 9.34% |
| 14 | Florida International University | 9.04% |
| 15 | Harvard University | 9.00% |
The Real Confidence University Portfolio Challenge is made possible by Altus Group Limited ("Altus Group") (TSX:AIF), in collaboration with the National Association of Real Estate Investment Trusts (NAREIT®) and the National Council of Real Estate Investment Fiduciaries (NCREIF®).
The Real Confidence University Portfolio Challenge II is currently underway with 32 schools and over 180 students participating. This year's team with the best performance will be awarded $30,000, with quarterly prizes of $2,500 awarded to the university with the top public and private sector performance of their portfolio.
Student teams from the following universities are participating in the Real Confidence University Portfolio Challenge II:
| • American University | • Texas A&M |
| • Brigham Young University | • Texas Christian University |
| • Case Western Reserve University | • The Ohio State University |
| • College of Charleston | • The Pennsylvania State University |
| • DePaul University | • University of Chicago |
| • Florida Atlantic University | • University of Connecticut |
| • Florida State University | • University of Denver |
| • Georgetown University | • University of Georgia |
| • Harvard University | • University of Miami |
| • Hollins University | • University of Missouri - Kansas City |
| • Indiana University | • University of San Diego |
| • Johns Hopkins University | • University of Texas at Arlington |
| • Lehigh University | • University of Wisconsin - Madison |
| • Middle Tennessee State University | • Utah State University |
| • Pepperdine University | • William and Mary |
| • Southern Methodist University | • York University |
Students and industry professionals can follow along at www.realconfidence.com/upc2.
About Altus Group Limited
Altus Group Limited is a leading provider of independent advisory services, software, and data solutions to the global commercial real estate industry. Our businesses, Altus Analytics and Expert Services, reflect decades of experience, a range of expertise, and technology-enabled capabilities. Our solutions empower clients to analyze, gain market insight and recognize value on their real estate investments. Headquartered in Canada, we have approximately 2,300 employees around the world, with operations in North America, Europe and Asia Pacific. Our clients include some of the world's largest real estate industry participants across a variety of sectors. Altus Group pays a quarterly dividend of $0.15 per share and our securities are traded on the TSX under the symbols AIF and AIF.DB.A.
For more information on Altus Group, please visit: www.altusgroup.com.
About the National Association of Real Estate Investment Trusts® (NAREIT)
NAREIT® is the worldwide representative voice for REITs and listed real estate companies with an interest in U.S. real estate and capital markets. Members are REITs and other businesses that own, operate and manage income-producing real estate, as well as those firms and individuals who advise, study and service those businesses. NAREIT® is the exclusive registered trademark of the National Association of Real Estate Investment Trusts, Inc.®
About the National Council of Real Estate Investment Fiduciaries® (NCREIF)
NCREIF® is an association of institutional real estate professionals who share a common interest in their industry. They are investment managers, plan sponsors, academicians, consultants, appraisers, CPA's and other service providers who have a significant involvement in institutional property investments. They come together to address vital industry issues and to promote research and education. NCREIF® produces several quarterly indices that show real estate performance returns using data submitted to it by its members. Its database consists of approximately 10,000 real estate properties comprising more than $500 billion of value. Its indices are used extensively for performance measurement and benchmarking.
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