Overview: The Cocoa Beach Pension Board has unanimously approved a full redemption request from the real estate investment manager ASB during their latest meeting. This decision follows a detailed evaluation of ASB’s underperformance, particularly within the real estate sector, where approximately 47% of ASB’s properties are over 20 years old and facing tenancy challenges due to a preference for newer buildings. ASB had historically used less leverage compared to peers, but concerns were raised after their leverage increased late in the cycle. The redemption process is expected to unfold over multiple quarters due to the slow real estate market and the firm’s guidance is likely to evolve during this time.
