PGIM Select Real Estate Fund Posts Strong 12.12% Return Through Mid-2026

September 11, 2026 - 12:12

The PGIM Select Real Estate Fund delivered a 12.12 percent year-to-date return as of June 30, 2026, according to the firm's second quarter commentary. The performance outpaced the fund's benchmark over the same period, reflecting favorable positioning across several property sectors.

Fund managers pointed to a mix of industrial, residential, and select office holdings as key drivers of the gains. Industrial assets continued to benefit from steady demand for logistics space, while residential properties held up on limited supply and persistent rental demand. Office exposure remained selective, with the team favoring newer, well-located buildings over older stock facing higher vacancy.

On the capital side, the fund maintained a measured approach to leverage, keeping borrowing costs in check as interest rates stabilized through the first half of the year. Managers noted that transaction activity picked up modestly, creating opportunities to acquire assets at prices below replacement cost.

Looking ahead, the team expects real estate fundamentals to stay uneven across markets. They flagged potential risks from slower economic growth and tighter lending conditions, but see room for continued gains in sectors with strong occupancy and rent growth. The fund plans to stay disciplined on valuations while seeking assets with durable income streams.