(Featuring Warren Wachsberger, CEO, AECOM Capital)

https://www.afire.org/podcast/diversifyingdigital202205/

As investors look for sustainable sources of inflation-protected yield, real estate investment is increasingly blurring into a wider range of “digital” real asset investment strategies.

Inclusive of physical broadband networks (fiber or wireless), small cell and distributed antenna system (DAS) networks, and data centers, digital real estate shares many of the same attributes as traditional real estate, and in many cases, it benefits from even greater positive tailwinds.

At its core, the development of digital real estate shares many of the same economic characteristics as traditional real estate development: You are building a physical asset that is monetized by leasing out a finite amount of built capacity, and whose value depends in large part on lease term, tenant credit, and the stability and growth profile of the underlying cash flows. And as with traditional real estate, investors can choose between a range of approaches based on risk tolerance, including core strategies focused on buying assets with stable in-place cash flows, to more opportunistic strategies that aim to create stabilized assets by either building new assets or by fixing existing non-stabilized assets.

In this episode of the AFIRE Podcast, Warren Wachsberger, CEO, AECOM Capital, discusses his recent Summit Journal article about digital real estate options to diversify your portfolio.