4. 4
Geography
US 23.09%
AU 10.84%
SG 9.10%
HK 5.78%
JP 4.67%
UK 3.05%
EU 3.65%
CA 3.76%
Total 63.94%
Sector
Industrial 15.75%
Retail 11.88%
Cell Tower 7.22%
Healthcare 5.98%
Residential 9.00%
Specialty 4.86%
Diversified 4.01%
Hotel 0.00%
Office 5.24%
Total 63.94%
Portfolio Position as of
5:15pm, 12 Feb, 2020
5. 5
Summary of transaction in last week
● Bought 50 share of SAFE (US Speciality)
● Bought 100 share of SMU (CA Industrial)
● Bought 50 share of MI (CA Office)
● Bought 30 share of XIOR (EU Residential)
● Bought 100 share of SGRO (UK Industrial)
● Bought 1 share of 8787 (JP Office)
● Sold 300 share of BBOX(UK Industrial)
● Sold 1 share of 8985 (JP Hotel)
7. 7
Country Currency/Fundamental view
Country Outlook Currency Fundamental Rationale
United States Bullish Appreciate Bullish
Japan Bullish Appreciate Neutral Supply-demand in the office sector remains tight, but rent rises are not accelerating, pace
of rent rises is likely to slow further towards the end of 2021
Australia Bullish Appreciate Neutral Continued demand for Industrial assets, expect Office market to outperform given limited
new supply and very strong demand for assets
Europe Bullish Depreciate Bullish Strong industrial and residential market due to potential rate cut, cautious on retail
Singapore Bearish Depreciate Bearish Retail and Hospitality sectors widely affected by close down of borders to Mainland
Chinese visitors
United Kingdom Bullish Appreciate Neutral Bright outlook towards London office market, limited supply and high pre-leasing: just
28% of developments currently hit the market speculatively, city rents are expected to
rise, post-trade uncertainties linger
Canada Bullish Appreciate Bullish
Hong Kong Bearish Appreciate Bearish Wuhan Pneumonie - retail sales expected to decline by 30% YoY in Jan, not expecting
recovery due to ongoing social unrest, narrowing price differentials between China/HK
and macro uncertainties
Source: Invbots analysis
8. 8
Allocation Updates
Country Outlook Market Cap (USD) Current
Allocation
% stock/cash
United States Bullish 1,337,343,183,818 35%
Japan Bullish 156,477,133,890 15%
Australia Bullish 104,301,083,558 15%
Europe Bullish 141,396,332,188 15%
Singapore Bearish 80,709,388,924 5%
United
Kingdom
Bullish 87,966,851,538 15%
Canada Bullish 62,282,769,175 5%
Hong Kong Bearish 35,121,369,455 5%
Source: Invbots analysis
19. 19
Ticker Name Industry Reasons
INA Ingenia Communities Group Residential - Housing market is rebounding due to rate cut. Melbourne & Sydney house price
reaching all time high
- Rather resilient to coronavirus compared to other commercial properties
CHC Charter Hall Group Diversified - Diversified between Office, Industrial, and Retail with strong FFO growth
CIP Centuria Industrial REIT Industrial - E-commerce demand is resilient to coronavirus (if not benefited) and remains
strong
- GMG targets mega-size properties and focuses on international expansion
- CIP targets mid to small-size properties and located near metropolitan areas in
Australia
GMG Goodman Group Industrial
ARF Arena REIT Healthcare - Early Learning (85%), Healthcare (15%), strong momentum recently
- WALE of 14.1yrs and Occupancy of 100%
Source: Invbots analysis
Model Portfolio: Growth Portfolio
21. 21
Ticker Name Industry Reasons
LEP ALE Property Group Specialised - Increasing HY rental revenue and profits
- None of the properties damaged by bushfires
SCP Shopping Centres
Australasia Property Group
Retail - Cuts rental costs to fill in vacancies
- Portfolio sale: loses money on one asset but does well for the other four
GOZ Growthpoint Properties Diversified - High occupancy rate (98%), office and industrial REIT (Good prospects)
VCX Vicinity Centres Retail - Improving rental revenue and profits
CLW Charter Hall Long WALE
REIT
Diversified - Benefitted from $1.4b acquisitions, increasing the portfolio's average lease expiry
Source: Invbots analysis
Model Portfolio: Dividend Portfolio
28. 28Source: Invbots analysis
Model Portfolio: Growth Portfolio
Ticker Name Industry Reasons
YGGC.MC General de Galeries
Comerciales SOCIMI
Retail Will look into fundamentals and make further updates next week
WDPP.BR Warehouses de Pauw
Comm VA
Industrial
COFB.BR Cofinimmo SA Diversified
XIOR.BR Xior Student Housing Residential
FLYP.PA Societe Fonciere
Lyonnaise SA
Office
30. 30
Ticker Name Industry Reasons
COFB.BR Cofinimmo NV/SA Diversified Selected due to statistics, criteria including:
- Market cap > 1b euro
- Gearing ratio < 100%
- Dividend yield > 3%
- Total return outperformed EU-REITs average in 1M, 3M, 6M, 1Y
Will look into fundamentals and make further updates next week
FLYP.PA Societe Fonciere
Lyonnaise SA
Office
S76.F STORE Capital
Corporation
Diversified
GFCP.PA Gecina SA Diversified
PRODr.AT Prontea Ependyseon S
Aknt Prs AE
Diversified
Source: Invbots analysis
Model Portfolio: Dividend Portfolio
36. 36
Growth Portfolio
Ticker Name Industry Reasons
ME8U Mapletree Industrial Trust Industrial ● Potential inorganic growth strategy in the US coupled with a focus on redevelopments in
Singapore - Manager’s well-timed acquisitions and completions/initiations of new
development projects underpin a steady growth profile
● Improvements in operating metrics and conductive cost of capital exhibit visible acquistion
path - redevelopment of its “landbank” of older flatted factories like Kolam Ayer cluster
should drive medium-term growth
C2PU Parkwaylife REIT Health Care ● Expect positive outcome from extension of lease
● Resilient due to its long WALE of 6.5 years
AJBU Keppel DC REIT Specialized
(Data Centre)
● Strong proxy to growing demand for data centre space
● Improvement in occupancy rate to 94.9% (there’s still room for improvement)
● Overall WALE of 8.6 years remains healthy
K71U Keppel REIT Office ● Downside mitigated by strong positive rental reversions with new signing rents in 4Q19
higher than current Grade A core CBD rents
● Divestment of Bugis Junction Tower has generated some buffer in terms of lowering
overall cost of debt and offering higher capital distributions
A17U Ascendas Trust Industrial ● Rental growth momentum supporting DPU recovery
● Revenue rose 5.9%, mainly by contributions from 28 new US and 2 SG business parks
Model Portfolio: Growth Portfolio
Source: Invbots analysis
37. 37
Growth Portfolio
Ticker Name Weighting Market Cap
(US$ mn)
PE ratio Yield Beta
ME8U Mapletree Industrial Trust 25% 4,541 21.62 4.60% 0.28
C2PU Parkwaylife REIT 25% 1,553 26.18 3.85% 0.31
AJBU Keppel DC REIT 15% 2,862 25.31 3.70% 0.22
K71U Keppel REIT 25% 3,122 28.11 4.57% 0.51
A17U Ascendas Trust 10% 8,509 20.15 4.95% 0.41
Portfolio Average 4,118 24.27 4.34% 0.34
Market Cap Weighted Average 22.85 4.56% 0.35
Model Portfolio: Growth Portfolio
Source: Invbots analysis
38. 38
Dividend Portfolio
Ticker Name Industry Reasons
HMN Ascott Residence Trust Residential ● Steady increase in DPU.
● Has limited exposure to the coronavirus.
● Refinanced debt at lower rates
● Strong balance sheet (improving profit and revenues)
J91U ESR REIT Industrial ● Steady increase in DPU
● Tenant retention rate: 69.6%, WALE is 3.8 years
● Higher than average occupancy rate (90.6%)
CNNU Cromwell Europe Industrial ● Increase in DPU over the past year
● Recent acquisitions of 3 German assets
● 39.2% increase in distributable income
T82U Suntec REIT Office ● Expecting firm rental reversions Singapore office portfolio in 2020
● City Mall has also exhibited resilience despite retail headwinds
● Increased exposure to Australia also provides it with a more diversified income
stream
Model Portfolio: Dividend Portfolio
Source: Invbots analysis
39. 39
Dividend Portfolio
Ticker Name Weighting Market Cap
(US$ mn)
PE ratio Yield Beta
HMN Ascott Residence Trust 30% 2,825 19.45 6.06% 0.25
J91U ESR REIT 20% 1,371 14.82 7.30% 0.37
CNNU Cromwell Europe 20% 1,585 14.93 6.84% 0.36
T82U Suntec REIT 30% 3,691 23.97 5.28% 0.58
Portfolio Average 1,894 18.29 6.36% 0.39
Market Cap Weighted Average 19.78 6.06% 0.41
Model Portfolio: Dividend Portfolio
Source: Invbots analysis
41. 41
J-REIT Review and Strategy
● J-REITs 0.5% , slightly underperformed 0.94% of TOPIX due to 1) Rumoured completion of the vaccines for Coronavirus in US 2)
investment sentiments in US / Japan propelled by the strong US Employment figures (Beat by 65k) 3) Yet, The recent measures
proposed by Japan Government to combat against the virus maintain tail risk.
● Outperforming factors:
○ High market cap (0-25%)
○ Mid Yield (50%-75%)
○ High PE (0%-25%)
○ Mid Beta (25-50%)
○ Industrial Sector
● Underperforming factors:
○ High Beta (0-25%)
○ High Yield (>75%)
○ Hotel & Resort Sector
● Proposed strategy: Long large cap and Industrial REIT on increasing production scale of medical equipments/medicals products
(Facemask)
44. 44
Growth Portfolio
Ticker Name Industry Reasons
8961 Mori Trust Sogo REIT Inc Office REITs Owned 15 properties in different major spots in Japan(80% in Tokyo), maintained 99.9% Occupancy rate on the
overall portfolio
3292 Aeon REIT Investment Corp Retail REITs 100% Occupancy rate, Stable DPU and Operating Revenue, trend, 3rd largest Retail REIT in JP
8987 Japan Excellent Inc Office REITs DPU growth reached a 5Y CAGR of 2.67%, major tenants are large corp. (Toshiba, Hitachi etc), 50% of the
buildings are in Area I, with occupancy rate 99.4%
8967 Japan Logistics Fund Inc Industrial REITs AA Rating from the Japan Credit Rating Agency, 99%+ occupancy rate since last year, DPU growth reached a
5Y CAGR of 2.37%
3466 LaSalle Logiport REIT Industrial REITs AA- Rating from the Japan Credit Rating Agency, maintained 98%+ occupancy rate since 2018, held 16
properties in Tokyo and Osaka,
Model Portfolio: Growth Portfolio
45. 45
Growth Portfolio
Ticker Name Weighting Market Cap
(US$ mn)
PE ratio Yield Beta
8961 Mori Trust Sogo REIT Inc 20% 259,380 26.6 3.79% -0.01
3292 Aeon REIT Investment Corp 20% 271,069 23.8 4.25% 0.12
8987 Japan Excellent Inc 20% 263,131 35.0 2.98% -0.06
8967 Japan Logistics Fund Inc 20% 260,480 29.4 3.38% -0.06
3466 LaSalle Logiport REIT 20% 242,887 31.1 3.58% -0.13
Portfolio Average
1,296,947 29.2 3.60% 0.02
Market Cap Weighted Average
29.1 3.60% 0.03
Model Portfolio: Growth Portfolio
46. 46
Dividend Portfolio
Ticker Name Industry Reasons
8984 Daiwa House Reit Investment
Corp
Diversified REITs Largest residential reit in JP, stable and healthy in DPU, Net Income and total assets, LTV kept ~40%
3466 LaSalle Logiport REIT Industrial REITs AA- Rating from the Japan Credit Rating Agency, maintained 98%+ occupancy rate since 2018, held 16
properties in Tokyo and Osaka,
3281 GLP J-REIT Industrial REITs AA Rating from the Japan Credit Rating Agency, DPU growth reached a 5Y CAGR of 2.29%, has been
expanding the portfolio from 62 properties in 2017 to 75 in 2019
3296 Nippon REIT Diversified REITs Diversified resilient portfolio in office, residential and retail, portfolio occupancy rate maintained at ~99%, Long-
term issuer rating: A
3249 Industrial & Infrastructure Fund
Investment Corp
Industrial REITs AA Rating from the Japan Credit Rating Agency, Held 72 properties with occupancy rate 100%, healthy DPU
growth,
Model Portfolio: Dividend Portfolio
47. 47
Dividend Portfolio
Ticker Name Weighting Market Cap
(US$ mn)
PE ratio Yield Beta
8984 Daiwa House Reit Investment Corp 20% 604,862 32.8 3.91% 0.00
3466 LaSalle Logiport REIT 25% 242,887 31.1 3.58% -0.13
3281 GLP J-REIT 20% 575,013 30.8 3.45% -0.38
3296 Nippon REIT 15% 221,366 27.1 3.57% -0.17
3249 Industrial & Infrastructure Fund
Investment Corp
20% 324,867 30.2 3.48% 0.06
Portfolio Average
1,968,995 30.6 3.60% 0.01
Market Cap Weighted Average
30.9 3.62% 0.01
Model Portfolio: Dividend Portfolio
52. 52
Growth Portfolio
Ticker Name Industry Reasons
BBOXT.L Tritax Big Box REIT PLC Industrial E-commerce basket
GPOR.L Great Portland Estates
PLC
Office London-focused → experience high demand for its enviably-located portfolio of West End
commercial properties
LAND.L Land Securities Group Plc
Ord
Diversified Landsec’s £3bn pipeline of development opportunities will shift its emphasis further towards the
office market. It continues to experience high demand – particularly in London.
CSH.L Civitas Social Housing
PLC
Residential Acquired 9 new properties within the latest three-month period. Investment opportunities remains
robust and schemes and properties brought by Civitas directly(active management)
SOHO.L Triple Point Social
Housing REIT PLC
Residential Growing business: Acquired 18 Properties in Oct 2019. Bought 40 Care Properties in Sep 2019.
Bought 5 Properties in July 2019.
SGRO.L SEGRO plc Industrial Owns range of warehouses in UK. Bet on UK E-commerce penetration rate (+19% Y-o-Y in 2019).
Structural uptrend of e-commerce will continue benefit SGRO. NPI +8% yoy in last two years.
DLN.L Derwent London Plc Office Subsided tail risk of Brexit after election. Top Quality Management constantly delivering market
outperformance. Recent acquisition of the Brixton's Blue Star (38.1m Pound Sterlings). Bet on
significant rebound of London office market and NAV Growth.
Implied Yield of 4%.
Model Portfolio: Growth Portfolio
53. 53
Growth Portfolio
Ticker Name Weighting Market Cap
(US$ mn)
PE ratio Yield Beta
BBOX.L Tritax Big Box REIT PLC 15% 2,441 10.2 4.84% 0.52
GPOR.L Great Portland Estates PLC 10% 2,361 41.5 1.35% 0.17
LAND.L Land Securities Group Plc Ord 15% 7,074 N.A. 4.86% 0.76
CSH.L Civitas Social Housing PLC 10% 608 22.9 5.41% 0.02
SOHO.L Triple Point Social Housing REIT PLC 10% 340 11.9 5.25% 0.10
SGRO.L SEGRO plc 20% 10,119 10.65 2.15% 0.55
DLN.L Derwent London Plc 20% 4,668 21.2 1.62% 0.65
Portfolio Average 27,612 17.6 3.58% 0.43
Market Cap Weighted Average 16.9 3.03% 0.57
Model Portfolio: Growth Portfolio
54. 54
Dividend Portfolio
Ticker Name Industry Description
BLND.L British Land Company PLC ORD Retail 5.5% dividend (sustainable), forward P/E ratio of 16.7
HMSO Hammerson PLC Retail Purely Yield and Value Play; Deep discount since 2H 2019;
Investors worrying the tail risk of the Brexit on Retail Portfolio; Yet,
the ongoing Sell-off of non-core assets; Consolidation of
resources refine focus on core business
PHP.L Primary Health Properties PLC Healthcare Large Market cap, stable business growth: squeezed £100mln out
to develop new healthcare premises in Ireland and the UK.
BBOXT.L Tritax Big Box REIT PLC Industrial Benefiting from a shift towards online shopping
AGR.L Assura PLC Healthcare Large Market cap, leader in primary care real estate, strong
balance sheet
Model Portfolio: Dividend Portfolio
55. 55
Dividend Portfolio
Ticker Name Weighting Market Cap
(US$ mn)
PE ratio Yield Beta
BLND.L British Land Company PLC ORD 20% 5,317 N.A. 5.56% 1.08
HMSO.L Hammerson PLC 20% 1,723 N.A. 11.50% 1.76
PHP.L Primary Health Properties PLC 20% 1,946 N.A. 3.68% 0.13
BBOX.L Tritax Big Box REIT PLC 20% 2,441 10.2 4.79% 0.52
AGR.L Assura PLC 20% 1,923 22.9 3.45% -0.16
Portfolio Average 13,350 16.6 5.80% 0.70
Market Cap Weighted Average 15.8 5.61% 0.77
Model Portfolio: Dividend Portfolio
60. 60
Growth Portfolio
Ticker Name Industry Reasons
APR.UN Automotive Properties Real Estate
Investment Trust
Specialized revenues expected to grow by 36% over the next
couple of years
BEI.UN Boardwalk REIT Residential High affo/ffo growths rate and rental growth
NWH.UN NorthWest Healthcare Properties
REIT
Healthcare Nice sector to be included with healthcare expense
growing faster than GDP, keep expanding new
markets (e.g. US)
D.UN Dream Office REIT Office Good fundamental, debt to assets lower than 40%
by selling off non core assets, ability to grow further
NVU.UN Northview Apartment REIT Residential using both strategic acquisitions and development
projects to grow the bottom line. Good fundamental
Model Portfolio: Growth Portfolio
61. 61
Growth Portfolio
Ticker Name Weighting Market Cap
(US$ mn)
PE ratio Yield Beta
APR.UN Automotive Properties Real Estate
Investment Trust
20% 459 71.0 6.47% 0.93
BEI.UN Boardwalk REIT 10% 2,452 15.5 2.11% 0.43
NWH.UN NorthWest Healthcare Properties REIT 30% 1,882 15.3 6.56% 0.76
D.UN Dream Office REIT 20% 1,839 16.3 3.07% 0.93
NVU.UN Northview Apartment REIT 20% 2,144 5.1 5.31% 1.01
Portfolio Average 8,776 24.6 5.15% 0.85
Market Cap Weighted Average 16.0 4.28% 0.77
Model Portfolio: Growth Portfolio
62. 62
Dividend Portfolio
Ticker Name Industry Reasons
GRT.UN Granite Real Estate
Investment Trust
Diversified Stable and well-diversified: Industrial, warehouse
and logistics. Focused in North America and Europe
REI.UN RioCan Real Estate
Investment Trust
retail Increasing mixed-use properties. Focused in
Canada six major cities, GTA (Toronto). Low debt-
to-assets ratio (below 45%)
HR.UN H&R Real Estate
Investment Trust
Diversified Undergoing several reallocation in 2019, need to be
monitored, office retail changing to residential in US,
stable cash flow
DIR.UN Dream Industrial Real
Estate Investment Trust
industrial Increased liquidity and reduced debt. Focused on
Canada and US.
NWH.UN Northwest Healthcare
Properties REIT
Speciality Worldwide owner including medical office, retirement
houses and hospitals + stable growth for the industry
Model Portfolio: Dividend Portfolio
63. 63
Dividend Portfolio
Ticker Name Weighting Market Cap
(US$ mn)
PE ratio Yield Beta
GRT.UN Granite Real Estate Investment Trust 20% 3,928 9.5 4.06% 0.51
REI.UN RioCan Real Estate Investment Trust 30% 8,599 10.7 5.30% 0.54
HR.UN H&R Real Estate Investment Trust 10% 6,087 25.6 6.45% 0.64
DIR.UN Dream Industrial Real Estate
Investment Trust
15% 1,862 12.1 5.01% 0.83
NWH.UN Northwest Healthcare Properties REIT 25% 1,882 15.3 6.56% 0.76
Portfolio Average 22,358 13.3 5.44% 0.64
Market Cap Weighted Average 15.0 5.48% 0.60
Model Portfolio: Dividend Portfolio
70. 70
US-REIT model portfolio
Growth portfolio Dividend portfolio
Name Stock code Name Stock code
American Tower AMT CoreCivic CXW
Wellltower WELL Realty Income Corporation O
Equinix EQIX Kimco Realty Corporation KIM
OUTFRONT MEDIA/d OUT Tanger Factory Outlet Centers, Inc. SKT
QTS Realty Trust, Inc QTS Taubman Centers, Inc. TCO
Prologis Inc PLD Newtek Business Services Corp. NEWT
Equity Lifestyle ELS AGNC Investment Corp AGNC
71. 71
Growth portfolio
Ticker Name Industry Reasons
AMT American Tower Corp Tower Benefitting from 5G, diversified portfolio(global presence in US,EMEA,Asia, Latin America),
moat(barriers to entry by law, first mover advantage), limited land supply
PLD Prologis Inc Industrial Benefitting from the shift from traditional retail to e-commerce, strong tenant
base(Amazon,DHL,FedEx,UPS), M&A deals(Active Management), Expanding to
EQIX Equinix Data Center Largest data center in the world (economic of scale and the advantage of network effect),
moat(high barry to entry, first mover advantage), benefitting from many kind of advancement in
technology(big data, IoT, 5g, etc)
ELS Equity Lifestyle Residential One of the highest growth industry, still many room for growth, limited supply in a certain
extend, high growth of FFO
QTS QTS Realty Trust, Inc Data Center DIfferent focus from EQIX(interconnection), QTS focus on colocation, active management,
expanding to different countries, track record of growth in leasing rate
WELL Welltower Inc Healthcare Increase in the population of elderly + good economy→ increase the spending in healthcare
sector, well diversified portfolio
OUT Outfront Media Billboard Limited supply( near zero-rate of growth) and consistent demand, significant regulatory barriers
to entry, steady growth in ffo
Model Portfolio: Growth Portfolio
72. 72
Growth portfolio
Ticker Name Weighting Market Cap
(US$ mn)
PE ratio Yield Beta
AMT American Tower Corp 20% 105750 52.28 1.7% 0.42
PLD Prologis Inc 20% 68810 37.81 2.28% 1.10
EQIX Equinix 15% 51680 77.21 1.63% 0.65
ELS Equity Lifestyle 15% 13270 53.05 1.68% 0.23
QTS QTS Realty Trust, Inc 10% 3400 265 3.01% 0.72
WELL Welltower Inc 10% 34090 49.97 4.11% 0.22
OUT Outfront Media 10% 4440 23.91 4.69% 1.10
Portfolio Average 281,440 71.45 2.47% 0.64
Market Cap Weighted Average 55.20 2.18% 0.61
Model Portfolio: Growth Portfolio
73. 73
Dividend portfolio
Ticker Name Industry Reasons
CXW CoreCivic Prison Very unique and special sector, slow market size growth but very stable, getting more
deals from the govt. since last year.
O Realty Income Corporation Retail Realty Income (O) is a benchmark in the real estate investment trust (REIT) space
with its monthly dividends and steady performance
KIM Kimco Realty Corporation Retail Kimco has been one of the most innovative Retail REITs successfully managing the
challenges posed by brick-and-mortar real estate. The stock has recovered since its multi-year
low last year and seems fairly valued at the moment.
SKT Tanger Factory Outlet
Centers
Retail No department store exposure
High occupancy always above 95%
Low occupancy cost compared to malls
TCO Taubman Centers Retail Being acquired
NEWT Newtek Business Services
Corp.
BDC Newtek Business Services is a generous and consistent dividend payer, and its stock price
has jumped 30% in 2019. NewTek is a rising star with a unique business model, and despite
its size, has garnered increasing positive attention from investors.
AGNC AGNC Investment Corp Mortgage Their profit is a function of their cost of debt, relative to the performance of the assets they
hold. Since their cost of debt is very closely related to the Federal Funds rate, when the
Federal Reserve cuts the rate, they benefit.
Model Portfolio: Dividend Portfolio
74. 74
Dividend portfolio
Ticker Name Weighting Market Cap
(US$ mn)
PE ratio Yield Beta
CXW CoreCivic 20% 1998 10.6 10.5% 0.64
O Realty Income Corporation 13.3% 26099 62.3 3.48% 0.22
KIM Kimco Realty Corporation 13.3% 8507 24.6 5.69% 0.82
SKT Tanger Factory Outlet Centers 13.3% 1277 14.82 10.4% 0.55
TCO Taubman Centers
NEWT Newtek Business Services Corp. 20% 422 - 10.1% 0.97
AGNC AGNC Investment Corp 20% 10293 16.5 10.1% 0.42
Portfolio Average 8100 18.95 8.74% 0.62
Market Cap Weighted Average 42.01 5.80% 0.40
Model Portfolio: Dividend Portfolio
79. 79
Growth portfolio
Ticker Name Industry Reasons
823 Link REIT Diversified Recently stepped into Foreign market, room for growth
Highest level of growth rate in DPU for consecutive 5 years
Decrease the geographical risk
778 Fortune REIT Retail It holds the mall mainly located in middle-class, which imply a
higher level of growth
Model Portfolio: Growth Portfolio
80. 80
Growth portfolio
Ticker Name Weighting Market
Cap (US$
mn)
PE ratio Yield Beta
823 Link REIT 80% 21,019 26.0 3.90% 0.49
778 Fortune REIT 20% 2,213 17.7 5.80% 0.41
Portfolio Average 89,929 24.6 4.28% 0.47
Market Cap Weighted Average 25.2 4.08% 0.48
Model Portfolio: Growth Portfolio
81. 81
Dividend portfolio
Ticker Name Industry Reasons
778 Fortune REIT Retail Track record in growth of dividend, high payout
ratio, defensive portfolio
2778 Champion REITs Diversified Stable dividend, good properties location
435 Sunlight REITs Diversified Relatively High yield, diversified portfolio
405 Yue Xiu REITs Retail Relatively High yield, stable dividend with growth
Model Portfolio: Dividend Portfolio
82. 82
Dividend portfolio
Ticker Name Weighting Market Cap
(US$ mn)
PE ratio Yield Beta
778 Fortune REIT 35% 2213 17.67 5.8% 0.41
2778 Champion REITs 35% 3538 17.54 5.53% 0.73
435 Sunlight REITs 15% 1035 18.22 5.8% 0.47
405 Yue Xiu REITs 15% 2079 20.74 6.24% 0.42
Portfolio Average 1805 74.17 5.77% 0.53
Market Cap Weighted Average ??? 5.80% 0.55
Model Portfolio: Dividend Portfolio
84. 84
Tritax Big Box (BBOX) - Intro
- UK’s pre-eminent owner of larger scale logistics real estate, with a portfolio unmatched in quality in
the UK quoted real estate sector.
- Invest in and manage income-producing Big Box assets and Pre-Let Forward Funded Developments.
- acquire land suitable for logistics use (Pre-let Forward Funded Development and a limited amount of
speculative development)
- Customers: logistics, manufacturing, consumer products, retail and automotive
Source: BBOX Interim report 2019
86. 86
Portfolio
- well diversified by size, geography and tenant
- Diverse customer base
- Valuations mainly from foundation assets
Source: BBOX Interim report 2019
87. 87
Financial Highlights
- Low vacancy rate (1%)
- target profit on cost: 30%
Key Performance Indicator
1. Total Return: 0.42%
2. Weighted average unexpired lease term (WAULT): 14.3years
Source: BBOX Interim report 2019
90. 90
SafeHold Inc (Ground Lease REIT) - Intro
- Ground lease: agreement in which a tenant is permitted to develop a piece of property
during the lease period, after which the land and all improvements are turned over to
the property owner
- The only Ground-Lease focused REIT in US
- Diversified Tenors of Properties: multifamily, office, industrial, hospitality and mixed-
use properties in major markets
- Outperforming for 3 months, with 47.9% Return
- Last month, 22.19% Return
91. 91
Benefit of Ground Lease
For SafeHold For Tenants
Much Lower Capital Requirement of Developing Properties
(Only Need to Buy The Land)
Avoids the large upfront capital expenditure of buying land.
The tenant is responsible for paying property taxes,
insurance, and maintenance expenses
The lease is typically for several decades at a minimum
(Predictable and fixed cost)
The lease is typically for several decades at a minimum
(Stable Income)
Reduced lease payments, as opposed to leasing both land
and a building.
After the lease expires, any buildings or other property
improvements belong to the landlord
(Significantly Higher Value of Property after lease)
94. 94
Recent Movement:
- 23 Dec 2019 Closes $180 Million Ground Lease In New York City
- 12 Dec 2019 Closes A New $285 Million Ground Lease In New York City
- 2 Dec 2019 Closes Approximately $620 Million Ground In New York City
- 7 Nov 2019 Closes $275 Million Manhattan Ground Lease In New York City
→ Total: $1.35B of Contracts Signed in Q4
Source: JLL Report Released Oct 2019
Source: Commercial Real Estate
Development Association
95. 95
Key Financial Comparison (Till latest Report Q3)
- Repositioning since 2018, unrecognized
- Sounding Annual Report of 2018 (Released Feb 2019)→ Price soar since
- “Safety, Income & Growth Inc.” Rebrands as “Safehold Inc” in Feb 2019
96. 96
Stock Movement - wait for the consolidation to enter
- Attention:
Earnings Call on
13/2/2020
Before Market
98. 98
GLP J-REIT (TSE 3281)
● Industrial REITs
● Top 5 outperformer (5
days, 1 month, 3 month)
in proprietary model
● 15 years experiences of
investing in logistics
facilities
● Focuses on Modern
Logistics Facilities (MLF)
Source: Report
102. 102
Opportunities ● Steady growth in Japanese
3PL(third party logistics) and
E-Commerce Market
● Limited supply of modern
logistics facilities
Source: Official Website
104. 104
Storage REITs - Unique Features
● Operating efficiency and relative simplicity
● Properties can breakeven at sub-50% occupancy rates with low management
● Leases are typically short-term (one year), but nearly half of renters lease their
space for more than two years
● 70% of customers are residential, with the other 30% split between businesses
106. 106
Demand and Supply
● New supply is added in a furious rate because of the good business
● Storage demand correlates closely with job growth and multifamily fundamentals,
which continues to exceed expectations
● Strong demand from renter households and businesses has kept rents and
occupancy generally flat in the face of ample supply
107. 107
Self storage trend
● rent growth and
underlying fundamentals
have stabilized over the
last several quarters
● PPI, historical correlation
with same-store rent
growth has signaled
positive momentum for
the sector since early 2018
Source: XXX
109. 109
Downside
● Too much supply growth may bring a impact to the sector
● Low pricing power and rent may see flat
● Storage needs may change in future years by technology