The characteristics of non-core properties are quite different from those of core properties. The latter consists of high-quality assets that have high occupancy rates and provide steady cash flow. The investment profile of a core investment is like that of a bond, with reliable income streams and low volatility. These properties do not require significant enhancement, renovation, or development. In contrast, non-core strategies encompass greater risk through increased use of financial and operational leverage, greater reliance on renovation or development, a focus on secondary markets, and a number of other factors. In return for taking on greater risk, investors in non-core real estate strategies expect to be compensated via higher returns.