REITs are typically correlated to stocks in the short term, but we believe they perform like real estate over the medium to long-term.
The nature of the listed market can lead to divergences between stock prices and intrinsic value, but significant discounts to intrinsic value do not happen often.
There are no shortcuts in a disciplined underwriting process. Thus we prioritize on-the-ground research and detailed financial modeling.
We believe in making real bets in order to hit our alpha targets. Consequently, our active share is high1.
In order to maintain our liquidity advantage we must stay small. We have set a hard cap on assets because we believe this is necessary in our niche space.
1Active share of the Presima Concentrated Strategy (75% as at June 30, 2017).