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A high-yielding property play to beat inflation

This well managed REIT has been delivering strong returns for shareholders and outperforming its benchmark since IPO.
A high-yielding property play to beat inflation
  • High weighting to industrial and retail warehouse property.
  • Latest asset sales above book value.
  • Capital being recycled into high yielding industrial assets.

Investors are not only facing heightened geopolitical risk, but also an inflationary backdrop that could hammer the real value of money. High yielding property, in key market segments that are benefiting from strong fundamentals, offers a high degree of protection. This is especially true of industrial and retail warehousing assets, both of which are supported by structural growth drivers. Quarterly results from this real estate investment trust (REIT) not only highlight sectoral growth trends, but bring into sharp focus the investment opportunity with the shares trading on an unwarranted large discount to NAV.

Recent asset sales were at above book value and the cash generated provides more scope to recycle capital into high yielding industrial property assets. Meanwhile, ongoing rental growth can drive portfolio valuation uplifts.

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