Asian Real Estate Securities Strategy
Asian Real Estate Securities Strategy

Asian Real Estate Securities Strategy


The Asian Real Estate Securities Strategy seeks attractive long-term, risk-adjusted returns by investing in publicly traded Asian real estate securities, to achieve core real estate exposure. To help achieve its objective, the strategy combines bottom-up and top-down analyses.

Investment Approach

The investment philosophy of the Global Listed Real Assets team is based on the premise that the performance of real estate securities will be most highly correlated with the underlying value of their assets. In aiming to achieve core real estate exposure in a cost-effective manner, the team invests in the equity securities of publicly listed real estate companies that it views as offering the best value relative to their underlying assets and growth prospects.

Deep Understanding of the Real Estate Asset Class

The team trust their proprietary research to unearth subtle differences between various real estate markets with the aim of providing clients with exposure to the asset class at the most favorable relative valuations.

Long-standing Tenure of Investment Team

Comprised of long-tenured and highly experienced investment professionals, the team offers investors the benefit of their shared experience and track record as a team dedicated to real estate securities investing.

A Well-Defined Value-Orientated Investment Process

Since inception, the team has consistently implemented a well-defined investment process that is geared toward providing our clients with diversified exposure to the real estate asset class in a cost-efficient manner, and at the most favorable relative valuations.

Proprietary Research Models

With extensive experience and expertise in both the public and private real estate markets, the team maintains proprietary NAV models for every company in the investable universe; results (implied cap rates, implied price per square foot, NAV premium/discount) are triangulated versus private market real estate valuations.

Investment Process
Information Gathering

Through a review of public information and meetings with company management, the team evaluates each company’s historical operating results, accounting practices, business goals and strategies. In addition, to better understand the properties in a company’s portfolio, the team visits selected company-owned assets and comparable properties.

Security Evaluation and Selection

Using proprietary valuation models that are maintained on every company in the investable universe, the investment team seeks to assemble a portfolio comprised of individual securities that it believes provide the best value relative to the companies’ underlying assets and growth prospects. Companies are screened using a variety of measurements, such as the share price-to-net-asset-value (P/NAV) premium/ discount, implied value per unit and implied property capitalization rate, to identify attractive relative valuation opportunities within each region.

Evaluation of Cyclical Factors

The team examines cyclical factors affecting Asian real estate markets in order to determine which countries and sectors are most attractive on a relative basis. The supply and demand drivers of each property type within each country (including population growth, income and employment levels, existing vacancies, zoning constraints, rents and financing availability for new construction) are analyzed to determine the risk/return characteristics of the companies’ underlying assets.

Allocation by Country and Property Type

The output of this top-down research is an asset-allocation framework that provides a suggested optimal exposure to each country and property type, with an overweighting to property markets that the team believes offer the best relative value. Additional key considerations in constructing and managing the portfolio include geographic and sector diversification and liquidity.