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Guest: Soultana Reigle, Managing Director and Head of US Equity, PGIM Real Estate
Soultana Reigle is Managing Director and Head of US Equity at PGIM Real Estate, where she leads the firm’s $60 billion US equity platform and serves as Senior Portfolio Manager for its US value-add strategies. PGIM Real Estate manages over $200 billion in debt and equity globally within PGIM, the $1.4 trillion asset management arm of Prudential Financial.
Soultana Reigle discusses PGIM’s $60 billion US equity platform, where the firm sees opportunity in today’s market, and how the business has evolved over 25 years. The conversation covers senior housing, data centers, office comebacks in San Francisco, Sunbelt supply challenges, and the firm’s sharpshooter approach to capital deployment.
Key Takeaways
Repeat joint-venture partners drive the vast majority of PGIM’s off-market deal sourcing.
“80% of our deal flow last year, which was close to $8 billion, was with repeat partners. That is an important part of off-market sourcing, being a great, steady, reliable source of capital.”
Soultana Reigle, [[00:00:00]]
An aging senior housing stock is creating a real occupancy gap in favor of newer, amenitized product.
“About a quarter of the existing senior housing stock is less than 15 years old, so you have quite an old stock relatively speaking. It’s not as amenitized as the newer product, and occupancy levels are probably 300 basis points higher in that newer stock versus older stock.”
Soultana Reigle, [[00:00:00]]
PGIM bought a San Francisco office asset in 2020 at a steep discount to its pre-pandemic contract price.
“We bought for about a quarter of the price that the same building was under contract for, as one of our strategies in 2020.”
Soultana Reigle, [[00:00:00]]
PGIM calls its current strategy ‘sharpshooting’ — targeted deals rather than broad sector bets, unlike the post-GFC recovery.
“We use the term sharpshooters — you’re seeing a sharpshooting situation out there, whether it’s capital that wants something very specific or opportunities within a sector or a geography. It’s not necessarily the same broad-based lift that you saw post-GFC.”
Soultana Reigle, [[00:00:00]]
Reigle’s biggest GFC lesson was staying prepared for the market to turn even while taking on value-add risk.
“It was the single most important lesson for me as a portfolio manager — being prepared if the music stops at all times. Even as a value-add investor where you’re taking more risk, you have to think outside the box, you have to be brave, but you really have to be prepared if the music stops.”
Soultana Reigle, [[00:00:00]]
