Investment Week: Property and asset management themes in focus
Over an investment cycle, one must have conviction in themes to have a chance of outperforming. This conviction can come at a cost of being ‘too early’ but can be very powerful as the theme matures and comes to fruition.
Two themes we have been pollinating within our Opportunities portfolio in recent months include real estate investment trusts (REITs) and asset managers.
Within our REIT exposure, we have been buyers of Land Securities, British Land and, more tentatively, Hammerson. All three trade on material discounts to their net asset values as the market is sceptical on property valuations.
Land Securities trades on a price to book of 0.65x, giving it a discount to NAV in the region of 35%, which has bounced nicely off the recent low of a circa 43% discount.