REITs outperform other asset classes
The yield gap compared to other asset classes remains high.
The difference to the next best asset class, equities, is around 100 basis points.
The difference to the “safe haven” German 10-year bonds is more than 300 basis points.
REITs offer more than 4,5 per cent returns and therefore more than other liquid asset classes.
Success factors
of REITs
Target and focus
- Focus on public listed REITs
- Global universe with focus on Europe
- Best in Class approach for portfolio structuring
- SDG/ESG compliant acc. Art 8 SFDR
- Long-term dividend stability
- Conservative debt ratios
- Focus of targeted REITs lies in the ownership and management of real estate
- Broadly diversified portfolio with regional / sectoral focus
- REITs generate profits from renting and leasing of real estate / land as well as the sale of real estate
- Tax transparent structures
- Qualification for tied asset pools i.e. real estate quota
REITs, the low-volatility,
globally diversified real estate investment
- The REITs fund invests in real estate investment trusts (REITs). It benefits from the liquidity provided by the stock exchange listing, the tax exemption at company level and the almost complete distribution of annual profits.
- Global universe of listed REITs offers specialisation and diversification opportunities.
- “Core” and “Core plus” risk profiles with a focus on yield and distribution respectively.
- The strategy is to actively invest in shares of listed REITs in order to generate sustainable and predictable returns. The experience and know-how of the REITs specialists at DeA Capital Real Estate Germany comes into play here.
- Quaestio Capital Management as well as the REIT team of DeA Capital Real Estate Germany have a very successful and longstanding experience in real estate equity portfolio management with more than € 3 billion REIT transaction volume in the last 14 years.
- The vehicle is a Luxembourg-based FCP-UCITS with daily liquidity for institutional and professional investors, structured as a sub-fund of the Quaestio Solutions Fund together with the multi-manager Quaestio Capital Management.
”The REITs Fund focuses exclusively on listed REITs and builds a portfolio with geographic and sector diversification.
Dr. Thorsten SchillingDirector Portfolio Management REITs
Portfolio:
Investment examples
Dream Industrial
- Dividend yield: 4.3%
- Loan-to-value: 30%
- Interest coverage ratio: 4.2x
STAG Industrial
- Dividend yield: 3.7%
- Loan-to-value: 25%
- Interest coverage ratio: 6.0x
Medical Properties Trust
- Dividend yield: 5.6%
- Loan-to-value: 32.6%
- Interest coverage ratio: 2.4x
Gecina
- Dividend yield: 4.6%
- Loan-to-value: 33
- Interest coverage ratio: 5.5x
