High-Yield Real Assets: How to Evaluate

Finding high yield requires a consistent method: evaluate net yield, liquidity, and risk. Focus on transparent offerings with clear fundamentals.

Start with sectors known for durable income, such as logistics or rentals. Verify tenant quality, lease duration, regional demand, and operating assumptions. Use conservative vacancy and fee estimates, and compare offerings on net yield rather than gross figures.

Diversification reduces drawdowns. Spread allocations across regions and property types, and set rebalancing rules so you don’t drift into concentration. Track alerts on distribution changes, material issuer updates, and liquidity conditions.

Execution costs matter. Spreads, slippage, and settlement delays impact realized returns. Prefer liquid windows and stage orders to manage costs.

Document your thesis per position and review outcomes monthly and quarterly. Feed lessons back into your watchlist and sizing plan.

Screening framework

1. Define targets for net yield, liquidity and risk.
2. Pull data on tenants, leases and demand. Use conservative assumptions.
3. Estimate net yield with all costs visible. Stress vacancy and fee changes.

Deep dive

• Tenants: quality, duration and renewal risk.
• Region: demand drivers and competing supply.
• Structure: fees, reporting and transfer rules.

Execute with discipline

Stage orders during liquid windows. Use limits to manage slippage. Keep small initial positions and scale only after reviews show stable yield and acceptable depth.

Ongoing review

Run a monthly check on distributions, liquidity and spreads. Use a quarterly rebalance with threshold bands to control drift.