Investment strategy
Our investment strategy is designed to maximise long-term returns without incurring undue risk through a well-balanced and diversified portfolio of investment properties in the living sector across Poland.
We invest in properties that generate – or will over time generate – predictable, stable and growing rental income. Our portfolio is structured to be resilient across a wide range of market and economic conditions while maintaining a long-term view.
Our investment strategy has evolved gradually over time based on thorough analysis, deep market knowledge, practical experience and expert guidance.
We aim to continually refine this strategy to ensure that we can sustain superior performance and further improve on our outstanding results.
Long-term
Feature one
Long-term
- We invest with a long-term perspective.
- 🡪We look beyond short-term trends and typical economic cycles when making investment decisions – enabling us to capitalise on opportunities arising from temporary market dynamics.
- 🡪We are patient and prepared to hold properties whose full potential may take time to materialise. Our long-term investment horizon makes us less susceptible to fluctuations in current yields and property values – allowing us to withstand significant market volatility.
Diversification
Feature two
Diversification
- Diversification is a key tool for managing overall risk and ensuring the resilience of our portfolio.
- We achieve this through:
- asset diversification by investing in multiple properties and a mix of property types,
- geographic diversification by investing in various locations throughout Poland,
- income and counterparty diversification by minimizing reliance on any single tenant or counterparty, and
- strategic diversification by executing a range of distinct real estate investment strategies across properties at different stages of the lifecycle.
Income focused
Feature three
Income focused
- We invest exclusively in properties that generate – or are expected to generate over time – predictable, stable and growing rental income. This income is typically linked to the consumer price index, providing a hedge against the impact of inflation.
- Predictable income streams enable us to withstand the pressures of short-term market events and persist with our soundly conceived plans.
- We believe that income producing properties are more likely to preserve value during market downturns and offer greater optionality – significantly enhancing our ability to finance, refinance and, when necessary, divest such properties.:
Resilience
Feature four
Resilience
- Our portfolio is structured to remain resilient across a wide range of market and economic conditions
- To build and maintain a truly resilient ‘all-weather’ portfolio that can stand the test of time, we:
- acquire diverse properties that provide exposure to multiple sources of uncorrelated returns,
- invest in income generating properties that deliver consistent returns across market cycles,
- remain nimble and flexible to capture opportunities and adapt to changing market conditions, and
- take a disciplined approach to mitigating risk and managing volatility through varied and adverse circumstances.
Investment approach
In structuring the portfolio, our investment strategy encompasses and overlaps across thematic, value and contrarian investing approaches.
Thematic investing
Our thematic investing approach is based on an in-depth analysis of the significant transformative trends impacting the living sector in Poland. We aim to identify the most compelling themes and actively pursue opportunities that emerge from them. Our goal is to invest in properties that stand to benefit from the secular growth created by these long-term structural trends.
Value investing
Fundamental analysis to determine the intrinsic value of a property is critical to our value investing approach, as we aim to invest in properties where there is a clear valuation discrepancy between the asking price and intrinsic value. Our focus on undervalued properties is driven by our belief that: (i) a well-priced purchase is often an essential determinant of a successful investment, and (ii) acquiring a property at a discount to intrinsic value provides a margin of safety that helps mitigate the risk of potential loss.
Contrarian investing
Investing in properties that are out of favour, overlooked or distressed – and may have been affected by market disruptions – is at the core of our contrarian investing approach. We are not afraid to go against prevailing market sentiment by taking a contrarian view, whereby: (i) we acquire undervalued properties when others are mostly selling (in a bearish market), and (ii) we avoid purchasing overvalued properties – or consider selling our own – when others are mostly buying (in a bullish market).