We launched the APN Global REIT Income Fund in April 2020. The aim was to deliver a reliable, attractive income, plus some capital growth, from a whole world of commercial property.
With the announcement of a 10% increase to the existing monthly distribution rate for Fund investors, and a total return of 38.27%1 last calendar year, I’m happy to say we’re delivering thus far.
The actively managed and liquid portfolio of global real estate securities now has REIT investments in North America, Europe, Asia and Oceania, with a concentration in regions and property types where structural trends and local fundamentals meet to drive sustained rental growth.
Emerging from the pandemic
Despite being launched in the depths of the pandemic, the Fund’s “property for income” investment focus has provided investors with growing rental receipts and distributions.
Nevertheless, the lockdowns, working-from-home, and limits on physical access to many of the places we previously took for granted, presented a difficult time for global REITs. Of our coverage universe, just 39% of global REITs were able to increase their dividends from 2019 to 2020.
And now today with the harshest of lockdown restrictions in the rear-view mirror, they have proven their mettle as dividend increases have become the norm. About 83% of global REITs in our coverage universe are expected to increase their dividends through 2022.