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TA Realty tells El Paso trustees Core Property Fund remains overweight to industrial and multifamily; single data‑center investment contributed to performance
Summary
TA Realty presented details on the $8.7B Core Property Fund, its sector and regional weights, leverage, liquidity posture and recent quarterly performance, and answered trustee questions about a 4% data‑center position and portfolio leverage.
TA Realty representatives presented to the City of El Paso retirement trustees on the Core Property Fund, outlining strategy, portfolio composition and recent performance.
Riley Fitzgerald introduced the firm and Jake Malleo—portfolio manager for the Core Property Fund—gave a concise overview. Malleo said the fund (Q1 data) is about $8.7 billion, levered to roughly 22.9% LTV, and is heavily allocated to industrial (about 41%) and multifamily (about 39%) for a combined ~80% exposure. He said occupancy across the portfolio is high (about 93%), that the fund has diversified square‑foot and multifamily exposure nationwide, and that the manager seeks to rebalance or dispose of assets that become uncompetitive.
Trustees asked about a data‑center investment; Malleo said the fund holds a single Northern Virginia data‑center asset representing about 4% of the fund—smaller than many data‑center positions—and that it contributed strongly to the fund’s recent returns (the single asset had produced more than a 30% contribution over the last year). He also described the fund’s mix of property‑level and portfolio (revolving) debt: property mortgages typically target no more than 50% LTV on individual assets, while the fund uses a revolving portfolio credit line (a $1 billion facility cited as an example) tied to SOFR for flexibility and prepayability.
Malleo reported that TA Realty issued Q2 performance figures showing a 1.73% net return for the quarter that outperformed the Odyssey benchmark by about 44 basis points; rolling 3‑ and 5‑year metrics remained competitive versus the benchmark. Trustees asked about a recent change in portfolio co‑management and TA said a new co‑portfolio manager had been hired and would start after Labor Day.
The presentation closed after trustee questions about structure, leverage and liquidity. No action was taken; trustees will continue to monitor manager reports and performance results as part of regular investment oversight.
