Strategy Blog


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Demographic Behaviour and Attitudes Provide An Excellent Investment Opportunity

Highlights

This provides additional information or updates to our existing investment strategy. Most recent post(s):

This Bloomberg article highlights different demographic groups demand for rental property:

  • The 50-60 age group is looking for easier living - avoiding the bills and work of owning a home.
  • Baby boomers are entering the stage of their lifecycle when downsizing their residence often occurs.

This macroeconomic view provides the top-down perspective for our U.S. REIT investment strategy.

Current Strategy

Medium-term Investment Strategy

  • BUY/HOLD U.S. REITs with excellent cash flow and good balance sheets (lower debt to equity ratios).

Triggers for Strategy Change

  • Supply of rental units begins to outstrip demand; increasing rental vacancies.
  • Increases in home ownership rate.

Categories

Type: Investment Strategy Thesis

Geography: U.S.

Sector: Real Estate

Sub-sector: Residential Renting & Leasing

Area(s) of Analysis: home ownership rates, rental vacancy rate, new home construction, homes sold

 

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