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Timbercreek Global Real Estate Fund

Manager Commentary 

The Timbercreek Global Real Estate Fund is pleased to provide you with a quarterly update which highlights the Fund's performance, portfolio changes and market commentary from the Portfolio Manager.

Highlights

  • 2016 was full of surprises, and the fourth quarter was no exception.  Trump won the U.S. Presidential election, OPEC agreed to curtail oil production and interest rates on government bonds rose across most markets.  Through all the noise, global real estate securities delivered a -3.0% total return.
  • From a mandate perspective, the Fund generated a +8.9% total return for the year, despite a negative 2.2% return in the fourth quarter.
  • During the quarter, the Fund responded to opportunities created by increased market volatility and added five new common equity positions diversified across Canada, the U.S. Germany and Australia. 
  • The Fund also established a private debt investment in a portfolio of office buildings in the U.S. where we believe in-place rents are below market and the Funds purchase price represents a significant discount to NAV. 
  • For the year ahead, we believe global REITs are priced to deliver an 8.5%-10.5% total return for 2017 as global real estate demand trends are firm and valuations are attractive, with global REITs trading at discounts to NAV and providing an attractive dividend yield that is fully covered, stable and growing. 

For further commentary, please click on the link below.

Quarterly Manager Commentary