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Timbercreek U.S. REIT Preferred Fund

Manager Commentary



The Timbercreek U.S. REIT Preferred Fund is pleased to provide you with a quarterly update which highlights the Fund's performance, portfolio changes and includes a quarterly market commentary from the Portfolio Manager.

Q4 2016 – Market Commentary 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 U.S. government bonds increased. Through all the noise, U.S. real estate fundamentals chugged along but preferred share prices declined.

  • In Q4, there was over USD 950 million of new preferred share issuance, bringing the year-to-date total to over USD 3.7 billion across 21 offerings.

  • Demand for industrial space from e-commerce tenants will continue to remain strong, driven by healthy growth in online sales.

  • From a mandate perspective, the Fund increased exposure to data, residential, and industrial REITs, while decreasing exposure to office, triple net lease and shopping centres.

We believe the underperformance of U.S. REIT preferred shares in 2016, combined with the fact that many issues are now trading at discounts, should set the stage for better returns in 2017.

For further commentary, please click on the link below.

Quarterly Manager Commentary