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26

Feb

The Quant Revolution in Sustainable Real Estate Investing: A Guide to the Future

#ESG #sustainableinvesting #realestate #greenfinance

“The future of finance is sustainability.” The Economist At Roseline Partners, we are bringing the quantitative revolution in finance to sustainable real estate investing. As The Economist noted, “sustainable investing is the future of finance.” Our team of quants, real estate developers and finance professionals with over 40 years of experience are poised to lead the sustainable transformation in real estate.

“Between 2018 and 2020, total US-domiciled assets under management using ESG strategies grew 42% to $17.1 trillion.” Morningstar. Sustainable real estate investing is one of the fastest growing areas of interest for investors and asset managers. Roseline Partners focuses on four core areas of business to execute successful sustainable real estate projects: project management, business analytics, valuation and financial services and property management.

“Younger investors today are demanding that their investment funds do more than make money, but also uphold certain ethical and social principles” Forbes. Millennials and Generation Z are driving the increasing demand for ESG and impact investing products according to The Wall Street Journal. At Roseline Partners, we tap into key market trends to provide innovative real estate investment products to meet client needs.

Our team takes a quantitative and data-driven approach to real estate development and investment. By using advanced analytics and modeling, we identify properties and locations poised for strong growth and value appreciation. We then implement the optimal sustainable design, technology and property management programs to maximize value.

How can we measure the impact of sustainable real estate investments?

There are several ways to measure the impact of sustainable real estate investments:

•Environmental impact metrics: Things like energy usage, water consumption, waste reduction, pollution levels, etc. By tracking these metrics over time, you can quantify the environmental impact of sustainable improvements and investments.

•Social impact metrics: Metrics like tenant satisfaction, community engagement, affordable housing units created, local jobs supported, etc. These help measure the social impact of real estate projects.

•Financial impact metrics: Sustainable real estate investments can also have a positive financial impact, which can be measured by things like operating cost savings, increased property values, higher rental premiums, lower cap rates, etc.

•Certifications and ratings: Achieving recognized sustainability certifications like LEED, Energy Star, WELL Building Standard, etc. These third-party certifications provide an objective measure of a building’s sustainability and impact.

•Benchmarks and indices: Comparing the performance of a sustainable real estate investment to industry benchmarks and ESG indices. Outperforming these benchmarks demonstrates a measurable impact.

• lifecycle assessments: Conducting lifecycle assessments to quantify the environmental footprint of a real estate development and tracking improvements over the building’s lifecycle.

•Impact reporting: Publishing annual impact reports that document a sustainable real estate investment’s progress against key impact metrics and goals. These comprehensive reports provide transparency for stakeholders.

•SDG alignment: Determining which UN Sustainable Development Goals (SDGs) a real estate investment contributes to, and measuring progress in supporting and advancing those SDGs.

•Resilience metrics: For properties with a sustainability or ESG mandate, measuring key resilience indicators like hazard risk mitigation, energy resilience, water security, etc. Improved resilience represents a measurable impact.

The future is bright for sustainable real estate investing. Let us help you invest in a sustainable future. To learn more about our ESG real estate investment strategies and products, subscribe to Sustainable Investing Digest here: Subscribe on LinkedIn https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7053058780464345088.

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