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Portfolio Reweighting

Portfolio reweighting is the process of adjusting the weightings of different asset classes within a property portfolio. This can be done to achieve a number of objectives, such as maintaining the portfolio's risk profile, improving the portfolio's performance, or meeting the investor's investment goals.

For example, a property investor might have a portfolio that is 60% residential properties and 40% commercial properties. If the residential property market starts to perform better than the commercial property market, the investor might decide to reweight the portfolio to 70% residential properties and 30% commercial properties.

Another example would be a property developer who has a portfolio of development properties that are at different stages of development. If one development property is nearing completion and is expected to generate significant   income, the developer might decide to reweight the portfolio to increase the exposure to this property.

Portfolio reweighting can be a useful tool for investors who want to maintain the risk profile of their portfolio, improve the portfolio's performance, or meet their investment goals. However, it is important to carefully consider the factors mentioned above before reweighting a portfolio.