Hazelview Investments is a global alternative investment manager focused on real estate and has been for over 20 years. We maximize returns for investors by employing a value-oriented investment philosophy combined with an active man­agement style to identify assets that will generate predictable cash flow over the long term. We have earned a reputation for providing conservatively managed, risk-averse investment opportunities for institutions, trusts and endowment funds, discretionary investment advisers and qualified individuals.

Our core competency is our ability to accurately value cash-flowing assets based on a comprehensive analysis of the quality and sustainability of their current and future revenue streams. This fundamental knowledge of bricks-and-mortar investing is critical to identifying high-quality real estate investment opportunities. Hazelview’s global real estate investment platform currently manages over C$10.4B* in both private and public real estate equity and debt in North America, Europe and Asia-Pacific. Investment structures include core, value-add and opportunistic strategies that are offered through separate accounts and com­mingled private and public funds. Hazelview is headquartered in Toronto with offices in New York, Hamburg and Hong Kong.

* As of September 2021.

Looking for alpha in your portfolio next year? We can help. In our Global REIT Outlook Report, we cover the following:

- How real estate protects against inflation

- Why REITs with pricing power in 2022 will outperform

- How some property sectors that did not perform well in 2021 are poised to play catch up in 2022; think, hotels in Japan.

Our exceptional team of investment professionals based in Canada, the U.S., Europe and Asia, providing Hazelview with the local eyes and ears, have collaborated to put this report together.

This year Hazelview celebrated its 10th anniversary! We look forward to another exciting year as we seek to deliver the strong risk-adjusted returns our clients have come expect. In our report we will explain how we believe the potential of sustained inflation, coupled with strengthening fundamentals will continue to drive attractive earnings growth for REITs going forward. We will also highlight which segments we believe are poised to outperform in 2022.

Sector forecasts

INDUSTRIAL: The industrial sector continues to benefit from the secular trends in e-commerce, which have strengthened even further with the onset of COVID-19 and the global shift to online ordering and delivery of everyday goods. The disruption to global supply chains that occurred over the past 2 years will likely lead to a shift away from just-in-time strategies towards a more defensive stance that will emphasize safety stock, leading to greater demand for space to warehouse excess inventory. The demand has clearly outpaced supply due to the pandemic acceleration of the trend and rental growth of 5-10% has therefore also reached continental Europe. We see a long runway for continued rental rate growth as rent comprises a nominal slice of tenants’ overall cost structure and is far outweighed by the benefit of locating as close as possible to end users.

OFFICE: The office sector in Europe is going to see an increasing polarization between prime and non-prime assets. ESG, wellness, connectivity and country factors are all differentiating the potential for each building. Overall, we see the generalization stemming from assumptions of work-from- home trends as an opportunity to access prime assets with attractive return profiles across Europe.

RESIDENTIAL: The residential sector is seeing an increased level of regulation and politicians have discovered it as an efficient way to attract voters. In Europe, we are less worried about an even higher level of rental restrictions but rather the question of how cap-ex cost for energy efficiency will be distributed amongst tenants and landlords. The defensive nature of the income due to the lack of supply of rental units is unlikely to change however the low absolute return of the investment is highly dependent on cost structures.

RETAIL: Retail formats have shown very different dynamics over the last years with Malls being the most effected by online shopping resulting in the least attractive growth profiles. At the same time the assets are trading at 30-50c on the Euro compared to the peak levels which poses selective opportunities for high quality portfolios. Constructing new centres will be all but impossible to build in most cities and the conversion to multifunctional lifestyle centres can address weakness of demand in the fashion sections. At the same time daily necessity retail formats proved to be most resilient during crisis scenarios and can also offer attractive cash flow yields for the portfolio.

OTHER: Public REITs offer investors the ability to invest in unique property types that are hard-to-do-so through the private market. We believe that in the near term, life sciences, education-focused facilities, cold-storage assets and casinos will offer attractive secular growth.

  • Life sciences are at the leading edge of technology and biology;
  • Education facilities offer attractive internal growth;
  • Cold storage assets play a critical role in the world’s supply food chain
  • Casinos are an emerging institutional property type offering attractive returns, supported by a steady customer base.

Investment principles & strategy

Hazelview focuses on identifying and valuing real estate investment oppor­tunities on a risk-adjusted basis. We source investment opportunities across the capital stack and access stable, inflation-hedged cash flow by investing in real estate both privately and publicly that own investment-grade real estate. Over the past 20 years we have built a full-service, active management platform with capabilities that stretch across the entire spectrum of real estate, investing privately and publicly in equity and debt. Our experienced team of real estate professionals are strategically located in key global markets including Canada, the United States, Europe and Asia, providing us with a deep understanding of local dynamics and enabling us to accurately and efficiently source, underwrite and monitor global real estate investments.

Private Real Estate Investments: Hazelview offers exposure to multi-residential and commercial real estate through direct investments under core, value-add and opportunistic strategies.  With over 20 years of real estate investment experience, we have a proven track record for executing; and our success in doing so is supported through a fully integrated investment, development and property management platform. 

Public Real Estate Investments: Hazelview offers global real estate exposure through investments in public equity and debt securities. Our global securi­ties platform allows us to create tailored solutions for investors seeking global real estate exposure and to provide investment strategies that can efficiently capitalise on mispricing in different global markets. We employ the same bot­tom-up approach we take to real estate investments when investing in public securities, which is to underwrite the assets directly, but primarily access the bricks-and-mortar through publicly listed real estate securities.

Four Quadrant Global Real Estate Partners: (“the Four Quadrant Fund”) is specifically designed to combine Hazelview’s various investment strategies into one globally diversified integrated real estate investment solution. The Four Quadrant Fund offers access to real estate private equity investments, while providing income and liquidity. By investing both publicly and privately in real estate debt and equity, the Four Quadrant Fund is designed to minimize volatility, while maximizing the total return for investors.

Performance verification

Hazelview Securities Inc. (“HSI”), a subsidiary of Hazelview Investments, is the manager of Hazelview’s global real estate securities strategies. HSI claims compliance with the Global Investment Per­formance Standards (GIPS®). To receive a list of composite descriptions and/ or presentation that complies with GIPS standards, contact HSI at info@hazelview.com.

COMPLIANCE STATEMENT

This information is provided for use by qualified accredited investors for informational purposes only. It is not intended for, and should not be distributed to, or relied upon by, the public. Information described herein reflects the views of Hazelview Securities Inc. as of the date here of. No representation or warranty is made concerning the accuracy of any information provided herein and there can be no guarantee that any forecast or opinion set out in these materials will be realized. This is not investment advice and may not be construed as investment, legal or tax advice, or as sales or marketing material for any financial product or service sponsored or provided by Hazelview Investments Inc. or any of its affiliates or agents.