Timbercreek Global Real Estate Securities - 2019 Market Outlook

Our bottom-up fundamental analysis currently suggests that global REITs are priced to generate a positive total return in 2019 in the range of 9–10%.  This return consists of a 5% cash flow yield and 4–5% earnings growth driven by increases in annual contractual rent bumps, positive releasing spreads and completion of redevelopment and development projects currently underway.  Our view is that the greater the percentage of your total return that comes from recurring income versus future growth, the higher the degree of confidence you can have in achieving that total return.