What Does AUM Mean in Real Estate?
What is AUM in Real Estate?
In real estate, AUM (Assets Under Management) refers to the total market value of properties that a real estate investment firm, asset manager, or fund is responsible for overseeing on behalf of investors. It includes properties that are actively managed, whether owned directly or through investment vehicles like real estate funds, REITs, or syndications.
AUM in Different Real Estate Contexts:
- Real Estate Investment Firms & Funds – AUM represents the total value of properties the firm manages, including those owned outright and those under management for institutional or private investors.
- REITs (Real Estate Investment Trusts) – AUM includes all properties within the REIT’s portfolio, impacting financial performance metrics.
- Private Equity & Syndications – In real estate syndications, AUM reflects the total portfolio value of assets managed by the syndicator on behalf of investors.
- Property Management Companies – Some firms report AUM as the total value of properties under management, even if they don’t own them.
How AUM Affects Real Estate Metrics
- Performance Benchmark – A higher AUM often indicates a firm’s scale, credibility, and ability to generate returns for investors.
- Fee Structure – Many real estate firms charge management fees based on a percentage of AUM.
- Investor Confidence – Institutional and private investors may consider AUM when evaluating a fund or manager’s track record.
