State fund commits $200m to residential real estate

The $50.8 billion Alaska Permanent Fund has committed $200 million to American Homes 4 Rent II, according to Laura Achee, director of communications with APF.

The fund is a private partnership between APF and American Homes 4 Rent that purchases vacant homes and manages them as rental properties. APF believes that for-rent single-family homes is an underappreciated asset class where value can be found, according to Achee.

APF has a target allocation to real estate of 12 percent and is currently allocated to the sector at approximately 11.6 percent. APF’s real estate portfolio produced a total return of 12.6 percent for fiscal year 2014, beating its benchmark, the NCREIF Property Index, by 140 basis points.