INVESTING IN REAL ESTATE Ireland
Ireland Real Estate INVESTING IN REAL ESTATE We believe that real estate warrants consideration in most investment strategies. Long-term investment objectives mean that investors have increasingly recognised that real assets have the potential to provide good diversification and an attractive risk/return profile. Real estate can produce income like a bond, enjoy capital appreciation like an equity, and derive returns from both capital and income cycles. DIVERSIFICATION The case for including real estate in a balanced portfolio stems from the low, and sometimes negative, correlation it offers relative to other major asset classes, thus aiming to lower portfolio volatility and seeking to enhance returns on a risk adjusted basis. POTENTIALLY STRONG AND STABLE INCOME RETURNS The income return from a real estate portfolio is derived from the rent roll produced by the underlying assets and is an integral part of the overall return offered by the asset class, typically providing a premium over bond yields. The more diversified a real estate portfolio is in terms of sectors, geographies and lease expires, typically the more stable the income stream. CAN OFFER AN EFFICIENT HEDGE AGAINST INFLATION In times of economic growth and rising inflation real estate occupational markets tend to benefit from increased competition for space which in turn drives rental values. As capital values are a function of both existing income streams and future reversions the asset class could offer an efficient hedge against rising inflation. AN INVESTMENT BACKED BY REAL ASSETS Unlike most other major asset classes an investment in real estate involves an investment in physical assets of bricks, mortar and land. This means that even when tenants vacate buildings the real estate investor continues to hold an asset which can be re-let, refurbished or redeveloped with a view to recovering or possibly enhancing value. Dublin Dublin Paris London
REAL ESTATE WITH SSGA State Street Global Advisors (SSGA) Ireland has been providing real estate asset management services to institutional investors since 1981 and currently manages circa 1bn 1 in direct and indirect real estate assets in Ireland, the UK, continental Europe and the United States. The Real Estate team manages a portfolio of more than 75 buildings with in excess of 300 leases/licences, and a combined rent roll of c. 54m per annum 1. SSGA s direct real estate portfolio is primarily invested in the three main sub-sectors of the market comprising offices, retail and industrial buildings. The Real Estate team is based in one of SSGA s nine Investment Centres and is located in Dublin. Led by Ian Johnston, who has been involved in managing SSGA s real estate portfolio for over 20 years, the team of dedicated property professionals has over 100 years experience in the real estate industry. About State Street Global Advisors For nearly four decades, State Street Global Advisors has been committed to helping our clients, and those who rely on them, achieve financial security. We partner with many of the world s largest, most sophisticated investors and financial intermediaries to help them reach their goals through a rigorous, research-driven investment process spanning both indexing and active disciplines. With trillions* in assets, our scale and global reach offer clients unrivaled access to markets, geographies and asset classes, and allow us to deliver thoughtful insights and innovative solutions. State Street Global Advisors is the investment management arm of State Street Corporation. * Assets under management were $2.4 trillion as of 31 March 2015. Please note that AUM totals are unaudited. Ian Johnston Head of SSGA Real Estate 1 SSGA, as at 31 March 2015. 1
OUR APPROACH At SSGA we adopt a fundamental approach to real estate as an asset class. With our extensive relationship networks within local markets we are in a position to assess the relative value of the asset class and identify the macroeconomic forces that are likely to influence returns across both geographies and sectors of the market. This approach is central to our process of developing portfolio strategies which are in turn implemented by our experienced team of real estate professionals. As no two properties are the same, our formula for delivering performance to clients is through the identification and exploitation of opportunities to add value to the assets that we manage. The type of projects our team is actively involved with on a daily basis include lease buy-backs/re-gears, building refurbishments, letting management, rent review negotiations together with the development and implementation of buy/sell/ hold strategies for individual assets. Universe of Services STATE STREET GLOBAL SERVICES Administration & Custodial Accounting & Financial Portfolio Management Tax & Regulatory Services Fund Establishment Investor Services Performance Reporting SSGA REAL ESTATE Portfolio Management Research Marketing Asset Management Sourcing Disposals Investment Strategy Risk Management Due Diligence Acquisitions Investment Appraisal & Analysis Project Management Individual Asset Strategies Advisory Services Client Reporting Real Estate Fund of Funds Property Fund Management We offer a broad spectrum of services to our client base, which is predominantly comprised of pension funds, corporates, charities and intermediaries.
OUR REAL ESTATE TEAM Our award winning team offers combined experience of over 100 years working within the industry. 23 26 26 17 14 Ian Johnston Head of SSGA Real Estate Martina McCarthy Head of Real Estate Transactions Tony Whitmore Senior Real Estate Fund Manager Daragh Clarke Senior Real Estate Fund Manager Orla Kelly Assistant Real Estate Fund Manager OUR PERFORMANCE SSGA has a proven ability to deliver strong performance to our clients having won the IPD European Property Investment Award in the Balanced Category for Ireland in 2009, 2010 and 2012 2 for the SSGA Property Fund (QIAIF), our flagship real estate fund. This fund is the #1 performing real estate fund over 10 and 15 years, and #2 over 20 years in the Mercer survey (31 March 2015). 3 2 Joint winner. Source: IPD.com 3 SSGA, Mercer Pooled Fund Survey, Property Fund Manager Average. SSGA Property Fund (QIAIF) is the #1 performing real estate fund over 10 and 15 years, and #2 over 20 years in the Mercer survey (31 March 2015). Past performance is not a guarantee of future results.
For more information about SSGA s complete fund offerings, please contact: Ann Prendergast Head of Relationship Management, State Street Global Advisors Ireland +353 1 776 3043 ann_prendergast@ssga.com ssga.com This material is solely for the private use of SSGA clients and prospects and is not intended for public dissemination. State Street Global Advisors Ireland Limited is regulated by the Central Bank of Ireland. Incorporated and registered in Ireland at Two Park Place, Upper Hatch Street, Dublin 2. Registered number 145221. Member of the Irish Association of Investment Managers. T: +353 (0)1 776 3000. F: +353 (0)1 776 3300. Past performance is not a guarantee of future results. Investing involves risk including the risk of loss of principal. The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA s express written consent. Investing in REITs involves certain distinct risks in addition to those risks associated with investing in the real estate industry in general. Equity REITs may be affected by changes in the value of the underlying property owned by the REITs, while mortgage REITs may be affected by the quality of credit extended. REITs are subject to heavy cash flow dependency, default by borrowers and self-liquidation. REITs, especially mortgage REITs, are also subject to interest rate risk (i.e., as interest rates rise, the value of the REIT may decline). There are risks associated with investing in Real Assets and the Real Assets sector, including real estate, precious metals and natural resources. Investments can be significantly affected by events relating to these industries. Investing in foreign domiciled securities may involve risk of capital loss from unfavourable fluctuation in currency values, withholding taxes, from differences in generally accepted accounting principles or from economic or political instability in other nations. Diversification does not ensure a profit or guarantee against loss. The views expressed in this material are the views of Ian Johnston through the period ended 31 March 2015 and are subject to change based on market and other conditions. This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. The information provided does not constitute investment advice as such term is defined under the Markets in Financial Instruments Directive (2004/39/EC) and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell any investment. It does not take into account any investor s or potential investor s, particular investment objectives, strategies, tax status, risk appetite or investment horizon. If you require investment advice you should consult your tax and financial or other professional advisor. All material has been obtained from sources believed to be reliable. There is no representation or warranty as to the accuracy of the information and State Street shall have no liability for decisions based on such information. The State Street Global Advisors Property Unit Trust was authorised by the Central Bank of Ireland as a unit trust pursuant to the Unit Trusts Act, 1990 and the European Communities (Alternative Investment Fund Managers Directive) Regulations 2013 (as amended) as a Qualifying Investor Alternative Investment Fund on 31 March 2015. This document should be read in conjunction with its Prospectus and Supplement. All transactions should be based on the latest available Prospectus and Supplement which contain more information regarding the charges, expenses and risks involved in your investment. Prospective investors may obtain these reports free of charge from State Street Global Advisors, Two Park Place, Upper Hatch Street, Dublin 2. T: +353 (0) 1 776 3000. F: +353 (0) 1 776 3300. Previous to 31st March 2015 this fund was known as the SSGA Exempt Property Unit Trust (EPUT). 2015 State Street Corporation. All Rights Reserved. ID4314-IREMKT-1387 0615 Exp. Date: 30/06/2016