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At AlbaCore, we focus on the long-term. As one of Europe’s leading alternative credit specialists, we invest in private capital solutions, opportunistic and dislocated credit and structured products. 

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Specialist in Asia Pacific, China, India and South East Asia and Global Emerging Market equities.

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Our philosophy is very simple. We are constantly searching for high quality businesses and when we acquire them, we will work relentlessly with them to create long-term sustainable value through innovation, ESG-led and proactive asset management.

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formerly Realindex Investments

Leader in active quantitative equities across Australian equities, global equities, emerging markets and global small companies.

Backed by a unique blend of research, portfolio construction and risk management, focused on uncovering original insights and translating them into investment strategies that are active and systematic, aiming to generate alpha.

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Stewart Investors manage investment portfolios on behalf of our clients over the long term and have held shares in some companies for over 20 years. They launched their first investment strategy in 1988.

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Global Property Securities

Global Property Securities

Global property opportunities are built on solid ESG foundations

Confirming our portfolio net zero overlay intention has further deepened our understanding of the global property securities sector we invest in. Our continuous focus on in-depth, in-house research means we can see things differently, which has led to discoveries into new risks and opportunities. Our focus on capital preservation remains as strong as always with a preference for allocating capital to well managed assets in high barrier to entry markets in many of the world’s most bustling cities.

Total portfolio net zero carbon emissions overlay

To get the full picture of the risks and opportunities, investors need to look how companies are identifying, measuring, addressing, reducing, renewing and supplementing their carbon reduction and renewable energy ambitions, not just how they operate their assets. Putting carbon measurement and Environmental, Social and Governance factors at the centre of our process for analysing companies ensures the full picture is apparent when it comes to valuing companies and deploying capital in this segment. 

“We believe the meticulous understanding of the global property securities sector we have garnered over many years has facilitated our in-depth ESG analysis”

Stephen Hayes

Head of Global Property Securities

Net Zero

Embodied CO2 p.a

7,026
tonnes

Operational CO2 p.a

4,464
tonnes

Development
Embodied Carbon

2,506
tonnes

Operational
Carbon Intensity*

2024
53 kg
C02 sqm
2029
26 kg
C02 sqm

Energy Intensity*

2024
1697 MJ
per sqm
2029
1610 MJ
per sqm

Solar Generation
to Energy*

2029
8.1%
2024
4.1%

Energy sourced from
Renewables*

2029
60%
2024
51%

Percentage Controlled Energy

41%

Cogeneration Energy

16.0%

Community charity foundation in place

74%
have a community
charity foundation

Board independence

73%
of independent
directors

Board diversity

28%
of directors
are female

The measurements set out in this infographic are based on both reported and estimated data sourced by third parties or by the relevant First Sentier Investors (FSI) investment team and are current as at 30 June 2024. Where estimated data has been used FSI has taken reasonable care to ensure that these measurements are accurate proxies it notes that they are estimates based on information and representations made by portfolio companies, which may ultimately prove to be inaccurate. No assurance is given or liability accepted regarding the accuracy, validity or completeness of these measurements and no reliance should be placed upon these measurements in any decision making.

*All forecasts are derived from FSI’s proprietary carbon analysis. These forecasts are based on information and representations made to the relevant investment teams by portfolio companies (which may ultimately prove not be accurate), together with assumptions made by the relevant investment team in relation to future matters such as government policy implementation in ESG and other climate-related areas, enhanced future technology and the actions of portfolio companies (all of which are subject to change over time). As such, achievement of these forecasts depend on the ongoing accuracy of such information and representations as well as the realisation of such future matters. Any commitments and targets set out in this material are continuously reviewed by the relevant investment teams and subject to change without notice.

Why invest with us in global property securities?

Diversified exposure

Real estate security returns are driven by a combination of local real estate fundamentals and broader capital market conditions. Due to the fundamentally localised nature of real estate,asset class returns across different regions have historically been characterised by low levels of correlation, and by a lack of uniformity. This phenomenon can lead to pricing anomalies – presenting opportunities to generate excess returns by capital allocation, and regional or stock selection.

Our portfolio can provide access to these property assets

Central business district and suburban office buildings

Super-regional / regional / sub-regional and convenience shopping centres

Logistical warehousing

Hotels

Healthcare

Self-storage

Data centres

Retirement assets

Residential investment and development

Global team – local experts

We believe that having specialist property investors in each region is the most effective way to manage a global property securities portfolio.

As such, the team’s highly experienced regional specialists are based across the world’s major property markets to provide on-the-ground research and knowledge that allows them to assess the risks and opportunities in the asset class.

Under the leadership of Stephen Hayes, the global property securities team consists of seven portfolio managers and three analysts, all of whom are focused solely on investing in publicly traded realestate securities.

They have a full understanding of stock specific endogenous risks, of the wider real estate market and of the macroeconomic conditions that can influence returns.

Case study

Data centres - tapping internet growth via listed property

Investing in listed property stocks that own data centres - the specialist buildings which house the infrastructure required to power modern internet usage – gives investors access to one of the greatest structural shifts of our time.

Reliable data centres are expensive to build which means that the supply of new centres is well controlled. A turn-key data centre in the US can cost twice as much as an office tower to build.

This cost reflects the highly specified plant and equipment required for the data centre to have virtually no risk of down time in operations.

Data centres have a wide range of business models appealing to a diverse range of customers - from governments to telecommunication companies to vast internet-centric firms.

With the industry thematic of a high rate of adoption of the internet, together with the large growth in cloud computing, data centres with the right business model can deliver high cash flows well into the future.

Data Centres - Total Operational Floorspace 

Source: 451 Research and Digital Realty

Case study

Build to rent boom

With accelerating tenant demand now an established long-term trend, the supply of purpose-built rental accommodation has failed to keep up with vacancy rates that are very low in most global cities*.

Strong house price inflation has affected housing affordability. Purpose-built, professionally owned and managed residential rental properties are emerging, with luxury amenities like gyms, community facilities, parcel delivery and even child care being included.

Within the ‘residential for rent’ asset class, cash flows have proved stable through economic cycles, with occupancy levels typically remaining high through periods of economic slowdowns. Rents are correlated to employment and wages growth, demographic trends and supply levels. From an institutional investment perspective, we believe the returns have been competitive.

* The vacancy rates for residential real estate is 7.2 % in Paris as of December 2019 and 3.9% in New York as of June 2020. Over the past 3 years, house price inflation in London, Paris and New York has been 2.2% (to 31 March 2020), 17.3% (to 31 May 2020) and 8.7% respectively (31 March 2020). Source: The National Institute of Statistics and Economic Studies, U.S. Census Bureau, HM Land Registry, Federal Reserve Economic Data (S&P/Case-Shiller NY-New York Home Price Index).

U.S. Household Formation vs Total Housing Completions 

Source: Government data as at March 2020

Meet the investment team

Stephen Hayes

Head of Global Property Securities

Andrew Schaffer

Senior Portfolio Manager

Dennis Maloney

Senior Portfolio Manager

Daniela Lungu

Senior Portfolio Manager

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