Analyse
Rigorously analyse market, submarket, and property level characteristics to identify properties that have structural demand that is difficult to satisfy.
The philosophy
AEW’s Essential Housing strategy aims at assembling a diversified portfolio of essential US housing assets (generally housing that serves lower- to moderate-income households) and managing that portfolio for long-term rent growth.
The strategy is intentionally structured without a promote, providing an alignment of economics that best serves both investors and the residents of the communities AEW owns.
Generate defensive income from housing with persistent demand imbalance
Assemble
Acquire and develop properties across the U.S. that have disproportionate demand relative to supply at the respective rent levels.
Utilise accretive financing to enhance in-place yields at moderate loan-to-value levels (50% LTV).
Manage
Manage properties with a focus on long-term durability of cash flow by targeting modest rent growth, lower resident turnover, increased occupancy, and stable operating costs.
Partner with key constituents to increase distributable cash flow where possible.
Reasons to consider
- Strategy and structure seek to align interests around economic stability
- Resilient cash flow from a quality seed portfolio
- Mitigated J-curve through ownership of stabilised, cash-flowing assets that provide current income
- Trusted fiduciary with 45 years of experience and $86 billion in AUM2
- Experienced fund leadership with operational expertise in essential housing
- Proprietary data analytics tool (Aegis) for acquisitions and portfolio management
1Source: AEW Research, CoStar. Rent growth measured from Q4 2000 – Q4 2025 compared to high-income rentals.
2As of December 31, 2025. AEW includes (i) AEW Capital Management, L.P. and its subsidiaries and (ii) affiliated company AEW Europe and its subsidiaries. AEW Europe and AEW Capital Management, L.P. are commonly owned by Natixis Investment Managers and operate independently from each other. Total AEW AUM of $85.9 billion includes $42.5 billion in assets managed by AEW Europe and its affiliates, $3.5 billion in regulatory assets under management of AEW Capital Management, L.P., and $39.9 billion in assets for which AEW Capital Management, L.P. and its affiliates provide (i) investment management services to a fund or other vehicle that is not primarily investing in securities (e.g., real estate), (ii) non-discretionary investment advisory services (e.g., model portfolios) or (iii) fund management services that do not include providing investment advice.
The analyses and opinions referenced herein represent the subjective views of the author(s) as referenced, are as of the date shown and are subject to change without prior notice.
Risks to consider
All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided. There could be other differences across similar products in the same strategy. Investors should fully understand the risks and other relevant details associated with any investment prior to investing.
The team
Amy Crotty
Head of Fund Operations
AEW
Dillon Lorda
Portfolio Manager
AEW
The firm
AEW is one of the world's largest real estate investment managers3. Founded in 1981, it has a long track record of successfully implementing core, value-add, opportunistic, and real estate securities strategies across the US, Europe and Asia. These strategies are offered in a wide range of investment vehicles, including comingled funds, separate accounts, mutual funds and securities mandates.
Boston
US HQ
825+
Employees globally
3Source: “2025 IREI.Q Real Estate Managers Guide”. The Guide, published annually by Institutional Real Estate, Inc., ranks real estate managers based on the gross value of real estate AUM ($m) as of December 31, 2024.
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