“There are REITs one can access around the globe, particularly in North America, offering exposure to sectors that are simply unavailable in Australia. Not only are many of the listed REITs invested in these property types attractively priced right now, but the opportunity set is also deep and diverse.”
Those were the words of my colleague, Mark Mazzarella, who in September explained why we’re launching the APN Global REIT Income Fund. As the Fund’s Regional Adviser with 20-plus years’ experience of US and Canadian REIT markets, I’d like to explain the kinds of investments Mark was referring to.
They say that in the midst of every crisis lies great opportunity. This has certainly proved true of the global pandemic. Whilst REIT markets have begun to recover now that a vaccine is imminent, one key fact remains; despite recent share price increases, relative to other financial investments REITs offer attractive income streams and inflation protection.
Happily for the APN Global REIT Income Fund, this is evident in most REIT markets around the world, including Australia. What separates North America from elsewhere are the deeper trends within the continent that are more powerful, more enduring and therefore more laden with opportunity.
This belief is expressed most elegantly by the Fund’s geographical allocation, shown in the chart below. As of 30 November 2020, 67% of the APN Global REIT Income Fund is allocated to North America because of the opportunities in rich and secure dividend yields with prospects for growth.