Macquarie Real Estate Securities Fund Q1 2025 Commentary

Summary

  • US economic growth slowed in 1Q25 amid policy uncertainty and restrictive Fed policy, but fiscal stimulus and potential rate cuts could offset weakness.
  • The Macquarie Real Estate Securities Fund posted a positive return but underperformed its benchmark, with Welltower Inc. as a key outperformer due to demographic tailwinds.
  • Strategic focus remains on quality REITs with structural growth drivers less sensitive to economic cycles, supporting long-term earnings growth in a weaker economy.
  • We believe the portfolio is well-positioned for resilience, emphasizing sectors with robust fundamentals and attractive valuations despite near-term market volatility.

real estate investment concept man hand holding virtual real estate growth graph property value new home for the family, home search, land price, property tax

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Market review

Economic growth in the US slowed further in 1Q25, continuing a trend that began in 2024. The slowdown became more apparent during the quarter, possibly reflecting consumer and business caution due to rising uncertainty around

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Macquarie Asset Management (MAM) is the asset management division of Macquarie Group. MAM is an integrated asset manager across public and private markets offering a diverse range of capabilities, including real assets, real estate, credit, equities and multi-asset solutions. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide. Delaware Funds by Macquarie refers to certain investment solutions that MAM distributes, offers, or advises. Investment advisory services are provided to the Delaware Funds by Delaware Management Company, a series of Macquarie Investment Management Business Trust (MIMBT), a Securities and Exchange Commission (SEC) registered investment adviser. The Delaware Funds are distributed by Delaware Distributors, L.P., a registered broker/dealer and member of the Financial Industry Regulatory Authority (FINRA) and an affiliate of MIMBT. Note: This account is not managed or monitored by Macquarie Asset Management, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use the Macquarie Asset Management's official channels.

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