PGIM Fund Posts Second-Best One-Year Total Return Among Retail-Focused NAV REITs
The PGIM Private Real Estate Fund, a continuously offered, closed-end tender offer fund taxed as a real estate investment trust and managed by PGIM Investments, reported a year-to-date return of 4.93% and one-year return of 10.77% for its Class I shares, as of July 31, 2025.
Investment banking firm Robert A. Stanger & Company recently cited the fund’s Class I second quarter year-to-date return of 4.23% and one-year return of 10.97% as of June 30 as the second-best one-year performance just behind Cohen & Steers Income Opportunities REIT, Inc. In April, the fund had topped the one-year total return rankings. Since inception in 2022, Class I shares have delivered an annualized return of 9.22%.
The REIT reported a total net asset value of approximately $264.8 million as of June 30, 2025, with a total asset value of $265.4 million. The fund is designed to generate current income and long-term capital appreciation through a diversified portfolio of private real estate holdings across residential, industrial, and necessity-based retail sectors.
The June monthly return for Class I was reported at 2.4%, the highest monthly return of 2025 by far, more than three times greater than the 0.67% monthly return of July 2025. The NAV per share for Class I stood at $29.09 as of June 30 with Class D, S, and T shares posting NAVs of $29.07, $28.97, and $28.97, respectively.
The fund declared regular June 2025 distributions of $0.1131 for Class I, equating to an annualized distribution rate of 4.67%.
A June 2025 distribution of $0.1073 was declared for Class D, equating to an annualized distribution rate of 4.43%.
June distributions of $0.0936 were declared for Class S and Class T, equating to an annualized distribution rate of 3.88%.
About 33.9% of the June distributions were declared as return of capital.
The fund also reported that it completed two acquisitions in June. The fund closed on an approximately $51.7 million equity commitment (approximately $162.5 million gross investment) in a 34-acre, 570-unit garden-style community in a suburb 20 miles north of Seattle. The fund, along with its joint venture partner, stated that it expects to execute a market rate to affordable conversion strategy which aims to provide attainable rental housing.
Additionally, the fund closed a $5.5 million equity investment (approximately $15 million gross investment) in an 82,000-square-foot manufacturing facility in southwest Houston. The building was originally developed in 2014 as a build-to-suit, and the current tenant has signed a new 15-year triple-net lease with annual escalations, the fund reported.
Overall, as of June 30, the fund held nine investments with a reported occupancy rate of 97%. Its property type allocation included 40.4% residential, 39.6% industrial, and 20% necessity-based retail. The gross property value across all holdings, including unconsolidated subsidiaries, totaled approximately $554.7 million.
The fund operates with 0% fund-level leverage but utilizes property-level debt, resulting in a combined leverage ratio of 54%.
The PGIM Private Real Estate Fund seeks to provide investors with private market access in an investor-friendly tender offer structure. It is managed by PGIM Real Estate, which has a total of $206 billion in assets under management and assets under advisory as of Dec. 31, 2024.
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