Sustainable property and infrastructure: Investing for a better tomorrow
Property and infrastructure companies are the essential components that underpin our societies. They are the utilities that power our electric grids, they are the offices and homes we live and work in, the logistics centres we utilise, and the tollroads, railroads and airports we move around with. We invest in these companies for the long-term; we invest with future generations in mind. We aim to steer companies in the right direction because we believe it leads to better investment outcomes. It also says a lot about who we are as investors and the world we are shaping for the future.
Insights
Power to price: Inflation, infrastructure and the social license to operate
Pricing power is now a major consideration with inflation on the rise. Equal consideration needs to be given to the social license of companies to raise prices in line with community expectations.
Why the ‘E’ should matter to property investors
While the decarbonisation efforts of Real Estate Investment Trusts (REITs) have advanced well in the last five years, it’s what happens next that could be most meaningful for investors.
Three decades, zero emissions: The future of decarbonisation
The redeployment of capital by utilities companies to fund renewable energy projects and improve resilience in the electricity grid represents a substantial multi-decade opportunity for investors.
Tokyo towers: The secrets of Japan’s net zero leaders
Investors with an ESG focus can take a lot from leading and technologically resourceful real estate companies in the world’s largest office market as they move quickly on their renewable energy targets.
Property sector yet to face its emissions reckoning
The full scope of the real estate securities sector’s contribution to global carbon emissions has not been fully quantified, which could potentially impact the valuation of listed companies not moving towards emissions measurement and disclosure from modernisation programmes.
Global listed infrastructure – a safe harbour for investors?
Infrastructure describes the physical assets that provide basic services to modern society, including utilities, transport and communication assets. The fundamental, essential nature of the services provided gives global listed infrastructure qualities that can be beneficial to an investment portfolio.
Investing in the EV revolution
Sales of electric vehicles (EV) are powering ahead. In fact 9% of all passenger vehicles sold today are EV’s – double the number just 12 months ago. But where do the opportunities lie for investors and what might put the brakes on this relentless growth?
Videos
What active ESG investing looks like
Investing in infrastructure is a huge responsibility. Watch FSI’s Listed Infrastructure team, led by Peter Meany, explain how we may influence companies for better long-term outcomes and investment returns.
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Japan’s larger landlord-developers
Mitsubishi Estate and Mitsui Fudosan, both listed companies actively engaged in development and as landlords, are examples of companies globally finding new pathways to carbon emissions reduction.
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EV and our new energy future
Electric vehicles are coming. The buildout of charging infrastructure to support EV demand, along with higher electricity “load”, will lead to significant investment opportunities for utilities.
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Not all industries are created equal
Rail and waste companies have recently been able to demonstrate their strong pricing power, meaning price increases within these industries are somewhat easy to push through to match and exceed rising inflation.
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Inflation hedge
Infrastructure companies are considered as an inflation hedge based on their ability to increase prices in line with or exceeding their cost inflation without destroying demand.
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Stagflation: around the corner?
While some believe current inflation increases might be transitory, a scenario of higher for longer inflation could result in a more structural inflationary environment.
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The net zero equation
Making a net zero commitment, we believe, is the norm now, particularly for infrastructure companies that account for the largest producers and consumers of energy.
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Hidden emissions in listed property
Our portfolio net zero overlay intention has further deepened our understanding of the global property securities sector we invest in. Our in-depth research means we see things differently.
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