Timbercreek 2020 Global Real Estate Securities Market Outlook: Global REITs to deliver another year of positive returns
TORONTO, January 8, 2020 -- Timbercreek Investment Management Inc. (“Timbercreek”) today released its 2020 Market Outlook, forecasting attractive total returns for global REITs, indicating strength in REIT cash flow growth and share prices for 2020.The report highlights major projections and trends in global real estate securities for the year ahead in markets including Canada, the United States, Europe, Asia, and Australia.
“We believe strong global labour trends and consumption are positively influencing commercial real estate fundamentals,” said Corrado Russo, Senior Managing Director, Investments & Global Head of Securities, Timbercreek. “Historically REITs have proven to deliver predictable income and earnings that are more resilient than other sectors of the economy, yet with yields higher than many fixed income alternatives, especially during periods of moderate growth and stable interest rates,” Russo continued.
Specific to Canadian real estate, the report identifies the following REIT opportunities:
- High levels of immigration driving robust demand for multifamily communities.
- Growing e-commerce penetration and new distribution chains creating increased demand for industrial facilities.
The report also highlights opportunities for the U.S. market:
- Increased demand for cellular towers driven by 5G wireless technology.
- Strong fundamentals for Class B residential housing.
Forecasts for global markets include:
- Europe: Attractively priced opportunities in Class A bricks and mortar retail spaces in Continental Europe.
- Japan: Demand for lodging expected to rise from inbound foreign travel around the 2020 Summer Olympics in Tokyo.
- Hong Kong: Significant reclassification of mortgage policies and land re-zoning anticipated to support residential demand, despite social unrest.
- Singapore: Surge in demand for data centre space in Singapore led by cloud-based powerhouses such as Amazon, Microsoft and Facebook.
- Australia: Self-storage sector expected to generate higher returns with a long runway for growth.
To view the report, please visit: www.timbercreek.com
Timbercreek Investment Management Inc. is a wholly owned subsidiary of Timbercreek Asset Management Inc., an active investor, owner and manager of global real estate and related assets focused on delivering sustainable and growing returns to our investors through our various separately managed accounts, TSX-listed entities and private investments.
Timbercreek Asset Management Inc. (together with its affiliates) is a global alternative asset class manager with over $10 billion (CAD)* in assets under management. Timbercreek employs a value-oriented investment philosophy and specializes in providing conservatively managed, risk-averse alternative asset class investment opportunities to investors.
For more information, please contact:
Timbercreek Investment Management Inc.
25 Price Street
Canada M4W 1Z1
Senior Vice President
Global Retail Distribution
Media inquiries please contact:
Hugh Mansfield, Proof Inc.
Irina Vukosavic, Proof Inc.
*Includes syndicated debt under administration, as of September 30, 2019
The Timbercreek 2020 Global Real Estate Securities Outlook Report and the content of this press release are for informational purposes only and are not an offer or solicitation to deal in securities. Any opinion or estimate contained in these documents is made on a general basis and is not to be relied upon for the purpose of making investment decisions. The statements made herein may contain forecasts, projections or other forward-looking information regarding the likelihood of future events or outcomes in relation to financial markets or securities. These statements are only predictions. Actual events or results may differ materially, as past or projected performance is not indicative of future results. Readers must make their own assessment of the relevance, accuracy and adequacy of the information contained in these documents and such independent investigations as they consider necessary or appropriate for the purpose of such assessment. These documents do not constitute investment research. Consequently, these documents have not been prepared in line with the requirements of any jurisdiction in relation to the independence of investment research or any prohibition on dealing ahead of the dissemination of investment research. Any research or analysis used in the preparation of these documents has been procured by Timbercreek for its own use. The information is not guaranteed as to its accuracy.