The current reality of historically low interest rates on fixed-income securities and increased market volatility across most asset classes is challenging investors as to how to achieve their investment objectives. This has created a more pronounced focus on recurring (or sustainable) income and dividend-yield oriented products.
Global Listed Real Estate Securities are a great option. They serve as a natural source of steady income, given the nature of the securities’ rental revenues and fiscal status, which encourage dividend payouts.
Presima, a Global Boutique Investment Manager, focuses on listed real estate securities. With a track record of investing in Real Estate Investment Trusts and Real Estate Operating Companies dates back to 1998, Presima is equipped with a stable, long-tenured team that has grown with the firm and the asset class through the years.
As a Global Boutique Investment Manager, Presima’s goal is to meet its clients’ global investment needs by delivering personalized service to institutional, high net worth and other sophisticated investors.
As an asset class, Global Listed Real Estate Equity Securities provide quality, attractive yields, liquidity and diversification, around the world and across all real estate sectors such as, office, retail and industrial.
Moreover, Presima can effectively tailor Real Estate Equity Securities portfolios to a client’s specific investment needs depending on the appetite for risk. Investment portfolios can also be designed to include both owners and developers, or only owners to replicate the underlying recurring cash flows generated by rental properties.
Jean-Guy Talbot, CEO of Presima, summarized, “Our yield-driven product is a good, steady, investment option to deal with this era of historically low interest rates for fixed-income securities and market volatility.”
“The dividend yield of the FTSE EPRA/NAREIT Global Developed Index, the asset class’ benchmark compares favourably with equities and bonds over the past 10 years,” explains Stéphane Larsen, Portfolio Manager for Europe, with Presima. “Another advantage of Listed Real Estate Equity Securities when compared to direct Real Estate investing is added transparency and liquidity. You are able to access companies financial information and analysts reports, which is standard when investing in public equities. Since the securities are listed on global exchanges they provide a significant liquidity advantage over other real estate investments.”
One World, One Team, A proven approach
On the question of what differentiates Presima from the competition, Talbot stated, “Our One World, One Team peer review investment approach ensures decisions are fully aligned with our clients’ interests.”
Indeed, the entire investment team is based in Montreal. It meets daily to share extensive global knowledge regarding investment opportunities and market intelligence gathered through more than 400 on-site visits a year. The team travels the world meeting with management and visiting the assets of companies, as well as prospects, in which it invests.
Presima’s investment process is driven by bottom-up, proprietary research. The firm’s investment professionals perform extensive and in-depth research on real estate equity securities within the broad investment universe. Every member of the investment team, whether covering North America, Europe, Asia-Pacific or Emerging Markets, is involved in the decision-making process.
“Our focus on identifying securities with sustainable cash flows that will grow over time is an integral part of our research process. This combined with our on-the-ground research and the inclusion of Environmental, Social & Governance considerations ensures that we deliver long-term growth to our clients,” stated Larsen.
Martin Pépin, Portfolio Manager for North America, Presima, added, “The breadth of the U.S. market permits opportunities in unique sectors like healthcare, datacentre and multi-residential. Furthermore, the liquidity of listed real estate securities offers our clients the ability to invest in lesser known companies where we can fully leverage our research expertise.”
Chris Blanchard, Portfolio Manager for Emerging Markets, Presima, explains, “For many investors accessing real estate in Emerging Markets can be very challenging. Presima has had a dedicated team covering this region for four years. We believe publicly traded securities are one of the most efficient ways to invest in some of the world’s most compelling regions in terms of growth and demographics.”
In June 2010, Presima joined National Australia Bank’s direct asset management arm. NabInvest’s strategy is to partner with best-of-breed investment managers in various asset classes who are totally focussed on delivering superior investment outcomes. Presima strongly believes its competitive advantage to meet that objective is its One World, One Team approach, which includes quality company research, the timely sharing of global information and market intelligence, as well as a disciplined peer review process fully aligned with its clients’ interests.