Listed real estate securities offer investors the following attractive attributes:
- Superior absolute and risk-adjusted returns
- Low correlation to other investment alternatives
- High levels of current income
- Governance and transparency
- Diversification by property type and geography
Although the global commercial real estate market has a value of approximately $30 trillion, only about 10% is held by publicly-traded companies. These companies now represent a myriad of sectors that include conventional property types such as office, multi-family, and industrial, but have grown to include other assets such as data centers, towers, and storage facilities.
At Sugi, we employ a rigorous top-down and bottom-up investment approach using our decades of experience. Our goal is to generate attractive absolute and relative returns over a cycle while seeking to quantify and limit downside risk. We seek to invest in stocks:
- That are trading materially below NAV, with a pathway to erase that discount
- That are trading at material discounts to intrinsic value
- Where Sugi can engage with management/boards to enhance shareholder value