Timbercreek 2019 Global Real Estate Securities Outlook Report: Global REITs Expected to Deliver 9-10 Percent Returns
TORONTO, Jan. 10, 2019 (GLOBE NEWSWIRE) — Timbercreek Investment Management Inc. (“Timbercreek”) today released its 2019 Market Outlook which identifies key trends the firm anticipates for global real estate securities in the year ahead. Overall, the report forecasts attractive performance across many markets including Canada, the United States and Europe.
“While we are cognizant of the fact that the global growth trajectory is changing, we believe this sets the stage for REITs to outperform broad equities by generating an attractive total return balanced between yield and growth,” stated Corrado Russo, Senior Managing Director, Investments & Global Head of Securities, Timbercreek. “REITs and their more predictable recurring income streams have proven to be a powerful solution in slowing GDP environments.”
Within the Canadian real estate sector, the report notes the following:
- Industrial REITs will benefit from e-commerce growing to represent a higher percentage of total retail sales in the coming years.
- Timbercreek is also enthusiastic about the outlook for Canada’s senior housing sector in 2019, with strong demographics creating outsized demand growth in this sector.
The report also highlights a positive overall outlook for the U.S., based on the following considerations:
- The world of real estate and technology is converging to create a strong secular growth story for data centres, representing one of the best investment opportunities in 2019.
- In the more traditional real estate space, multifamily and single-family rental markets are poised to benefit from a slowing for-sale housing market.
- Triple net lease REITs focused on owning gaming properties offer attractive external growth potential and high cash-on-cash returns.
Highlights – Other Markets:
- Continental Europe: Urbanization, sustainable cash flows and specialty themes with low correlations to the broader market offer the best risk-adjusted investment opportunities for 2019. Multifamily residential markets in Germany and Ireland offer a compelling opportunity to earn outsized returns while the fallout from Brexit should enhance the appeal and demand for office markets in places like Belgium and the Netherlands.
- Japan: Timbercreek believes that small- to medium-sized Grade B office buildings located in Tokyo are well positioned to experience further rental growth driven by a record-low unemployment rate, steady economic growth and strong property fundamentals.
- Hong Kong: Entering 2019, Timbercreek favours companies that own office buildings in decentralized areas of Hong Kong.
- Singapore: Singaporean-based data centres offer an attractive opportunity to earn outsized returns with secular growth characteristics.
- Australia: Non-discretionary retail shopping centres offer a compelling opportunity to generate above average dividend yields supported by resilient cash flow.
To view the report, please visit: www.timbercreek.com
Timbercreek Investment Management Inc. is a wholly owned subsidiary of Timbercreek Asset Management Inc., an active investor, owner and manager of global real estate and related assets focused on delivering sustainable and growing returns to our investors. Through our various separately managed accounts, TSX-listed entities and private investments, Timbercreek Asset Management Inc. (together with its affiliates) manages over $8.5 billion1 (CAD) in assets on behalf of investors seeking quality alternative asset class investments. Timbercreek Asset Management Inc. employs a value-oriented investment philosophy, which is combined with an active, hands-on asset management style, to identify opportunities that will generate predictable and sustainable investment returns for our investors.
|Hugh Mansfield||Mary McGuire|
|Mansfield (for Timbercreek)||SHIFT Communications (for Timbercreek)|
For more information, please contact:
Timbercreek Investment Management Inc.
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Global Retail Distribution
The Timbercreek 2019 Global Real Estate Securities Outlook Report and the content of this press release are for informational purposes only and are not an offer or solicitation to deal in securities. Any opinion or estimate contained in these documents is made on a general basis and is not to be relied upon for the purpose of making investment decisions. The statements made herein may contain forecasts, projections or other forward-looking information regarding the likelihood of future events or outcomes in relation to financial markets or securities. These statements are only predictions. Actual events or results may differ materially, as past or projected performance is not indicative of future results. Readers must make their own assessment of the relevance, accuracy and adequacy of the information contained in these documents and such independent investigations as they consider necessary or appropriate for the purpose of such assessment. These documents do not constitute investment research. Consequently, these documents have not been prepared in line with the requirements of any jurisdiction in relation to the independence of investment research or any prohibition on dealing ahead of the dissemination of investment research. Any research or analysis used in the preparation of these documents has been procured by Timbercreek for its own use. The information is not guaranteed as to its accuracy.
1 Includes syndicated debt under administration. As of September 30, 2018.