Medamerica Retirement PS 401K Plan

Transcription

Medamerica Retirement PS 401K Plan
Invesco Equity Real Estate Securities Trust
Quarterly Report for the Period Ending December 31, 2011
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Medamerica Retirement PS 401K
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Table of Contents
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Portfolio Summary
Investment Philosophy and Process
Recent Performance Analysis
Long-Term Performance Analysis
Portfolio Structure
Investment Center Update
Invesco Institutional Highlights
Appendix
Primary Contacts
Relationship Contact
Rudy Cabarrubia
713.214.1026 ph
mailto:[email protected]
11 Greenway Plaza
Suite 2500
Houston, TX 77046
For Existing Client Use Only. Not FIDC Insured, May Lose Value and not Bank Guaranteed. This
product is a collective trust fund for which Invesco National Trust Company serves as trustee and
investment manager. The fund is not FDIC-insured or registered with the Securities and Exchange
Commission. Fund investors and potential investors are strongly encouraged to review the fund’s
Declaration of Trust (available upon request or at www.Invesconationaltrust.com) for additional
information regarding the operation and investment objectives of the fund. Total return assumes
reinvestment of dividends and capital gains for the periods indicated. Individual Plan performance may
vary depending upon the timing of contributions and withdrawals. Investment return and principal value
will fluctuate so that, when redeemed, an investor’s shares may be worth more or less than when
originally purchased. Periods > 1 year are annualized. This publication may contain confidential and
proprietary information of Invesco Advisers and /or Invesco. Circulation, disclosure, or dissemination of
all or any part of this material to any unauthorized persons is prohibited without prior written consent
of Invesco. The opinions expressed herein are based on current market conditions and are subject to
change without notice. This is not an offer to buy or sell any financial instruments.
*Source: FTSE International Limited (“FTSE”) © FTSE 2011. FTSE ™ is a trade mark of London Stock
Exchange Plc and The Financial Times Limited and is used by FTSE International Limited under license.
All rights in the FTSE Indices vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept
any liability for any errors or omissions in the FTSE Indices or underlying data. Past performance is not
a guarantee of future results.
Internal Account Number: T-80089920-73
Investment Center Contact
Robin Ziegler
+19727157462 ph
13155 Noel Road
Three Galleria Tower, Suite 500
Dallas, TX 75240
Coverage Team
Alesia Coffman
Real Estate Product Manager
972.715.5885 ph
Mario Tacchi
Product Specialist
972.715.7404 ph
Invesco Real Estate
Three Galleria Tower
13155 Noel Road, Suite 500
www.invescorealestate.com
Bhavik Desai
Product Specialist
972.715.7486 ph
[email protected]
mailto:
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Portfolio Summary
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- Major points and conclusions this period
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Highlights
- While long-term structural issues of excess debt persist, the U.S. witnessed improved
economic data during the quarter.
Client Level Market Value Summary
QTR
YTD
Beginning Value
$18,171,410
$18,418,976
Contributions
Withdrawals
Investment Change
Ending Market Value
$441,186
-$1,424,657
$2,901,312
$20,089,251
$3,230,845
-$3,305,281
$1,744,711
$20,089,251
- Employment growth and jobless claims, in particular, were better than economists’
estimates and offered the potential for a stronger pace of growth in 2012.
- Nevertheless, economic growth is expected to remain modest by historical standards and
structural issues such as the U.S. federal government deficit have not yet been addressed
and may continue to restrict the U.S. economy’s growth rate.
- Real estate fundamentals continued to modestly improve as a result of low levels of new
construction coupled with positive net absorption for most property sectors and markets.
- Within the REIT market, the Lodging sector outperformed during the quarter, as this more
cyclical sector benefited from a perceived stabilization in macro risks.
- The portfolio outperformed the benchmark, benefiting from positive stock selection across
several sectors. The modest weighting to cash detracted from relative performance given
the rally in the market during the quarter.
- Looking into 2012, the outlook for commercial real estate fundamentals will likely be
dependent upon the pace of economic growth. The forecast for new construction across
most all property sectors and markets remains low relative to history.
Fund Performance Chart
g
g
Portfolio (gross)
Portfolio (net)
g
Benchmark
25
20
15
10
5
0
-5
QTR
1 Year
3 Year
5 Year
Inception (06/01/94)
Fund Performance
Benchmark1 Excess Return
(%)
(%)
15.26
0.75
8.28
1.22
Period
QTR
1 Year
Portfolio (%)
(gross)
16.01
9.50
Portfolio (%)
(net)
15.80
8.70
3 Year
21.23
20.33
21.04
0.19
0.02
-0.72
-1.42
1.44
12.18
11.34
10.05
2.13
5 Year
Since Inception
(06/01/94)
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FTSE NAREIT All Equity REITs Index
All data as of 12/31/2011.
Source: Invesco. Gross of fee returns are before deduction of management fees but
after operating expenses. Net returns will be lower. Past performance is not a
guarantee of future results. The performance shown is fund level performance and is
not actual client performance.
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Confidential - Client Report For Quarter Ending 12/31/2011
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- Objectives
- Product Profile
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Overview
Investment Philosophy
- Invesco's philosophy is based on two fundamental principles: 1) to maximize predictability
and consistency of investment returns and 2) to minimize risk through strict attention to
portfolio design.
Objectives
- Our objective in real estate securities investment is achieving a higher than market return
with average market risk over the long-term.
- Invesco maintains well-diversified portfolios with exposure to major sectors of the market,
although our stock selection disciplines and fundamental research may lead us to
overweight or underweight particular sectors and/or economic regions.
- The most important aspect of our investment approach is the incorporation of both
fundamental real estate analysis and quantitative securities analysis, while also controlling
risk.
Product Profile
- Research allows us to focus on a real estate company's long-term investment value; we
believe that long-term performance will be determined by property market cycles, quality of
real estate assets and expertise of the management team.
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The cornerstone of our portfolio design is
to produce consistent, predictable returns
while minimizing risk.
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- Stock Selection Model
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Overview - continued
- Invesco’s investment process may be primarily viewed as a bottom-up stock selection
methodology.
- Using fundamental and quantitative research, we narrow the Qualified Universe by
screening companies using the following steps: - Fundamental Real Estate Analysis Securities Analysis - Portfolio Construction/Optimization.
- The primary objective of the investment process is to build risk controlled portfolios of
attractively priced securities of companies with relatively better long-term fundamental
prospects.
Our firm possesses the resources and
infrastructure to meet the increasing
needs of our clients. Invesco Real Estate
has both the product and personnel depth
needed to meet our clients’ current and
future requirements.
Stock Selection Model
Real Estate
Securities Universe
~ 220 Stocks
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STEP ONE
Invesco’s Qualified Universe
(~115 Stocks)
STEP TWO
Real Estate Analysis
(~80 Stocks)
STEP THREE
Securities Analysis
(~60 Stocks)
STEP FOUR
Portfolio Construction
(~40 Stocks)
Screen for minimum market capitalization and daily trading volume
Identify best long-term investments from
real estate perspective
Rank stock according to best value
Create optimal risk/return relationship
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- Recent Performance
- Contributors
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U.S. Market Review
- Issues of deleveraging, government spending and economic policy continued to dominate
world headlines during the quarter.
- While long-term structural issues of excess debt persist, the U.S. witnessed improved
economic data during the quarter.
- Nevertheless, economic growth is expected to remain modest by historical standards and
structural issues such as the U.S. federal government deficit have not yet been addressed
and may continue to restrict the U.S. economy’s growth rate.
- Real estate fundamentals continued to modestly improve as a result of low levels of new
construction coupled with positive net absorption for most property sectors and markets.
As several macro risks, including European
sovereign risk, tended to stabilize during
the quarter, the U.S. equity market
trended higher.
Equity Index Sector Performance
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Quarter
YTD Return
1
40
30
FTSE
NAREIT
All Equity
REITs Index
35.2
29.3
22.5
18.8
Percent
20
16.1
15.3
9.9
8.3
13.6
12.7
11.7
15.9
15.9
15.4
12.2
10.0
7.7
10
2.8
2.7
0
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*Source: FTSE International Limited (“FTSE”) © FTSE 2011.
-0.8
-5.2
-10
-14.3
-20
Retail
4
Industrial
Office
Ind/Office
Residential
Lodging/
Resorts
Self Storage
Health Care
Diversified
Timber
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- Contributors
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Fund Performance
Period
QTR
1 Year
Portfolio (%)
(gross)
16.01
(%)
(%)
15.26
0.75
9.50
8.70
8.28
1.22
21.23
0.02
20.33
-0.72
21.04
-1.42
0.19
1.44
12.18
11.34
10.05
2.13
Primary Sector
Return (%)
- We expect that GDP growth will generally continue to trend positively from quarter to
quarter in most major global economies.
3 Year
5 Year
Since Inception
(06/01/94)
- The relative lack of new construction in recent years is creating more orderly real estate
rental markets and has, or will, offer better rental growth prospects once combined with
trade, employment or consumption growth.
Five Largest Contributors
US Market Review - continued
Portfolio (%)
(net)
15.80
Asset Name
HOST HOTELS & RESORTS INC
PUBLIC STORAGE
HCP INC
PROLOGIS INC
LODGING - RESORTS
35.29
SELF STORAGE FACILITIES
21.72
HEALTH CARE
19.63
INDUSTRIAL
19.11
REGIONAL MALLS
18.30
Asset Name
Primary Sector
Return (%)
NATIONAL RETAIL PROPERTIES INC
FREESTANDING
-0.59
SIMON PROPERTY GROUP INC REIT
Five Smallest Contributors
DCT INDUSTRIAL TRUST INC
INDUSTRIAL
3.58
WASHINGTON REAL ESTATE INV
DIVERSIFIED
4.59
PEBBLEBROOK HOTEL TRUST
LODGING - RESORTS
16.20
DDR CORP
SHOPPING CENTERS
18.93
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Source: Invesco. This portfolio is actively managed. Portfolio holdings are subject to
change and current holdings may differ. Gross of fee returns are before the deduction
of management fees but after operating expenses. Past performance is not a
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Fund Performance Table
Period
QTR
Performance Review
- Over the 22 years that Invesco has been managing real estate securities portfolios, the
gross annualized total return since inception (June 1988) for our domestic composite is
12.84%, which compares favorably to the annualized total return of 10.28% for the FTSE
NAREIT All Equity REITs Index, the longest running domestic real estate securities
benchmark.
- Over long-term periods, the primary drivers of listed property security returns should be
fundamental property level operating income growth and the pricing environment for real
estate assets. Long-term property level operating results are governed by a leasing cycle
that is usually longer and more predictable than the overall economy, resulting in property
level operating performance that is generally more predictable and stable than the macro
economy. Pricing for real estate is governed by both the capital market environment and
supply and demand for real estate assets. While real estate pricing can change, we believe
the current pricing environment positions listed real estate fairly compared to many other
investment alternatives.
- Invesco’s investment process is designed around identifying companies which offer both
better fundamental prospects and better relative investment value throughout changing
economic, real estate fundamental and pricing environments. This approach has
contributed to not only favorable benchmark relative performance for the life of our listed
property investing activities, but favorable results in both better and worse listed property
markets.
Portfolio (%)
(gross)
Portfolio (%)
(net)
(%)
(%)
16.01
15.80
15.26
0.75
1 Year
9.50
8.70
8.28
1.22
3 Year
21.23
20.33
21.04
0.19
0.02
-0.72
-1.42
1.44
12.18
11.34
10.05
2.13
5 Year
Since Inception
(06/01/94)
Fund Performance Chart
Portfolio (gross)
Portfolio (net)
Benchmark1
25
20
15
10
5
0
-5
Q4
1 Year
3 Year
5 Year
Inception (06/01/94)
Fund Calendar Year Performance
Period
Portfolio (%)
(gross)
Portfolio (%)
(net)
(%)
(%)
2011
9.50
8.70
8.28
1.22
2010
24.41
23.50
27.95
-3.54
2009
30.76
29.80
27.99
2.77
2008
-33.60
-34.12
-37.73
4.13
2007
-15.37
-16.02
-15.69
0.32
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Source: Invesco. Gross of fee returns are before deduction of management fees but
after operating expenses. Net returns will be lower. Past performance is not a
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Top Ten Holdings
Portfolio Structure
Portfolio (%)
SIMON PROPERTY GROUP INC REIT
9.59
VENTAS INC
HCP INC
5.02
4.48
- The portfolio outperformed the benchmark, benefiting from positive stock selection across
several sectors. The modest weighting to cash detracted from relative performance given
the rally in the market during the quarter.
EQUITY RESIDENTIAL
4.17
BOSTON PROPERTIES INC
4.16
PROLOGIS INC
4.04
- Stock selection was most favorable in the Lodging and Office sectors where improvement in
the outlook for the U.S. economy benefited these more cyclical sectors. In addition, the
portfolio benefited from favorable security section in the Apartment and Mixed
Office/Industrial sectors.
HOST HOTELS & RESORTS INC
3.92
AVALONBAY COMMUNITIES INC
3.73
HEALTH CARE REIT INC
3.66
PUBLIC STORAGE
3.65
- The Regional Mall sector detracted from relative performance as the portfolio’s bias towards
higher quality companies tended to lag the benchmark given the rally in lower quality stocks
within this sector.
Portfolio Characteristics
Portfolio Statistics
1.00
Equity Beta
1.01
1.00
FFO (Cash Flow) Multiple
17.3x
16.6x
FFO Expected Growth
Multiple to Growth Ratio
12.0%
1.4x
11.0%
1.5x
2.6x
34.7%***
2.6x
36.1%***
Dividend Yield
Portfolio
Benchmark1
Dividend Coverage
Percent
Dividend Payout
50
3.6%**
3.8%
1.47x
1.49x****
68.00%
67.29%****
Average Market Cap
$6,384MIL
$3,152MIL
Number of Holdings
51
% of Equities
40
Benchmark
0.99
Fixed Charge Coverage
Leverage
Property Type Mix Chart
Portfolio
Market Correlation
% S/T Investments & Accrued Income
97.7%
2.3%
30
24.1 24.9
20
1
18.1 17.4
14.4 14.0
11.5 11.6
10
7.9
5.9
6.6 6.2
4.4 4.5
5.2 5.6
5.7 5.8
2.3
1.7 2.0
0.0
0
Diversified
Health Care
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Industrial
Ind/Office
Office
Lodging/Rsrts
Residential
Retail
Self-Storage
Timber
Cash
**Portfolio div yield is based on indicated yield per Bloomberg incorporating company
div reductions that may not be included in index div yield. ***Debt plus preferred
stock, divided by the sum of debt, preferred stock, and consensus Net Asset Value.
****There are 10 companies which pay no dividends at the moment. Removing these
stocks from the index, increases the dividend payout to 68.1% and decreases dividend
coverage to 1.47x. Source: FTSE International Limited (“FTSE”) © FTSE 2011.
Portfolio characteristics are subject to change. This portfolio is actively managed.
Current portfolio holdings and characteristics may vary.
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Regional Diversification – Portfolio
Portfolio Structure
- Invesco increased the portfolio’s exposure to the Apartment sector during the quarter,
following an improvement in relative value and an outlook for healthy earnings growth.
Similarly, modest additions were made to the Lodging sector.
g
g
g
g
- Additions were also made to the Health Care and Freestanding Retail sectors given the
attractive dividend yields available coupled with the potential for earnings accretive
acquisition opportunities.
g
g
g
g
Pacific 20%
Mountain 7%
W. North Central 2%
E. North Central 8%
Northeast 17%
Mideast 14%
Southeast 13%
Southwest 8%
- Modest reductions were made in the Diversified sector, where exposure to Vornado Realty
Trust was reduced given less favorable relative value amid a moderating outlook for growth
in their primary markets. Moreover, reductions also were made to the Self Storage and
Regional Mall sectors given their less favorable relative value compared to other alternatives.
- We expect to maintain well-diversified portfolios across all property types and believe the
best prospects for relative outperformance are based on a combination of relative
fundamentals and stock valuations.
Regional Diversification - Benchmark1
g
g
g
Pacific
Mountain
West North
Central
Northeast
g
g
East North
Central
g
g
g
Pacific 18%
Mountain 7%
W. North Central 3%
E. North Central 9%
Northeast 18%
Mideast 16%
Southeast 14%
Southwest 9%
Mideast
Southeast
Southwest
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1
Source: FTSE International Limited (“FTSE”) © FTSE 2011. Portfolio characteristics
are subject to change. Geographical information provided by SNL Financial. Exposure
to US regions may be less than 100% based on US company purchases of
international assets.
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Investment Center Update
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- Provided by Invesco Real Estate Securities Group
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News and Updates:
- In November 2011, Krishna Soma joined the Invesco Real Estate Securities team as a
senior securities analyst.
Invesco Insights
John Greenwood: Annual Economic Outlook — 2012
John Greenwood, Invesco's chief economist, shares his annual economic outlook for
2012. He explains that the fate of the world economy and the prospects for financial
markets in 2012 and 2013 depend primarily on the answers to three big questions: Will
the Eurozone crisis be resolved in a timely and effective manner? Will the U.S. economy
maintain its recent better performance? And will the Chinese economy avoid a hard
landing in 2012? Read the Commentary.
Global Property Securities Performance Indicators
Invesco's Global Property Securities Performance Indicators is a quarterly commentary from
Invesco's Real Estate Securities Team, providing a detailed overview of the Global Real Estate
Securities market, relative current valuations, fundamentals and outlook for the future.
Read the Commentary.
Real Estate Debt Performance Indicators
Invesco's Real Estate Debt Performance Indicators is a quarterly commentary from Invesco's
Real Estate Securities Team, providing a detailed discussion on the Commercial Mortgage
Backed Securities Market, including commercial mortgage performance and the latest
government policy updates. Read the Commentary.
Invesco Real Estate Autumn 2011 House View Brochures
Invesco Real Estate's comprehensive analysis of local market conditions and real estate
forecasts, with an in-depth look at the key real estate markets in each region. North American
Market Outlook, Global Market Outlook. European Market Outlook, Asian Market Outlook.
Please see appendix for the Featured Quarterly Topic: 2011 Year in Review and 2012
Outlook
The Chartered Financial Analyst® (CFA®) designation is globally recognized and attests to a
charterholder’s success in a rigorous and comprehensive study program in the field of investment
management and research analysis. CPA® and Certified Public Accountant® are trademarks owned by
the American Institute of Certified Public Accountants.
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We appreciate your continued support.
Portfolio Managers:
- Joe Rodriguez, Jr.
- Mark D. Blackburn, CPA, CFA®
- Ping-Ying Wang, Ph.D, CFA®
- Paul Curbo, CFA®
- James Cowen
- Darin Turner
Securities Analyst Team:
- Patrick Beytagh
- Chris Faems, CFA®
- Grant Jackson
- Xiaoying (Catherine) Li
- Shelby Noble
- Shabab Qadar
- Hui “Sabrina” Ren
- Krishna Soma
- Min Zhang, CFA®
www.invescorealestate.com
Invesco Institutional Highlights
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Organizational Update
Gregory McGreevey Joins Invesco as Head of Invesco Fixed Income
On November 28, 2011, Gregory McGreevey joined Invesco as head of Invesco Fixed
Income. As a respected industry veteran, McGreevey assumes responsibility for
day-to-day oversight of Invesco’s fixed income business, reporting to Karen Dunn Kelley,
senior managing director. Read the press release.
Intellectual Capital
Three Questions that will Determine the Fate of the World Economy
In his annual outlook, Invesco Chief Economist John Greenwood discusses three big
economic questions: Will the Eurozone crisis be resolved in a timely manner? Will the
U.S. maintain its recent improved performance? And will the Chinese economy avoid a
hard landing? Read the outlook.
Quality Stocks on Top Again?
Since the market peak in 2011, a reversal of fortunes has beset lower-quality stocks after
two years of dominance. For equity investors on the sidelines considering reentry, history
suggests having a quality bias is critical at this stage in the cycle. Read the insight.
Investing for Dividends and Dividend Growth
Head of Global Equity Products for Invesco Perpetual, Nick Hamilton, discusses his team’s
value approach to income investing: why dividends matter, dividends in a low interest rate
environment, dividends and inflation, and the compound dividend effect. Read the insight.
Investment Insights
Asia Pacific Real Estate: Opportunity Amidst Economic Uncertainty
While global economic uncertainty has cast a shadow over the real estate market in Asia, we
continue to see opportunities for investors. Thomas Au, Director of Asian Research, discusses
investment strategies for the region and key considerations for investors. Read the insight.
Global Equities: A core investment strategy in an integrated world
Traditionally, global equity investing was structured by country allocation, as that was
viewed as a major source of influence on stock price behavior. But for companies today,
the opportunity is many times the size of any single economy. Read the white paper.
Why Emerging Market Debt is an Attractive Asset Class
Although Emerging Markets (EM) debt recently posted its largest loss since 2008, we
believe EM debt remains attractive. Claudia Calich, Invesco Head of Emerging Markets,
discusses why EM debt should be a strategic opportunity, rather than a tactical play.
Read the insight.
institutional.invesco.com
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Eurozone Debt Crisis: Assessing the
State of the Union
Senior Managing Director Karen Dunn Kelley
interviews Invesco Chief Economist John
Greenwood on the two-pronged plan agreed to
at the December summit, U.K.'s position and if
the approach is enough to stem the crisis.
Read more.
All material presented is compiled from sources believed to be reliable and current,
but accuracy cannot be guaranteed. This is not to be construed as an offer to buy or
sell any financial instruments and should not be relied upon as the sole factor in an
investment making decision. As with all investments there are associated inherent
risks. Please obtain and review all financial material carefully before investing.
II-GICB-FLY-3-E 1/12
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Appendix
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2011 Year in Review and 2012 Outlook
Twelve months ago, we noted an outlook based on moderately positive fundamentals for real estate investment however with significant macro uncertainty and periods of
market volatility. Our expectations were directionally correct, but understated the eventual reality. The Arab Spring, Japanese natural disaster, U.S. sovereign debt rating
downgrade and the many troubles of Europe have provided a tumultuous period for investors to navigate.
Operating performance of listed real estate companies did indeed prove favorable in 2011, with
almost universally positive earnings and net asset value growth. However, wider macro-economic
and political events have materially influenced the capital markets, with levels of volatility and
correlation between stocks reaching elevated levels. North American listed real estate has shown
excellent resolve throughout the year, however, elsewhere across the globe, price resilience has
been less evident, with markets pushing listed real estate companies to trade at wide discounts to
net asset value.
Like 2011, the outlook for 2012 remains clouded by macro uncertainties. On a positive note, we
are seeing recurring positive economic data points in the U.S. and a potential soft landing scenario
for China. Asian and many emerging markets are shifting economic policy posture towards growth
support and away from inflation control, given the policy and externally induced growth slowdown
and inflation moderation. Overall global GDP growth for 2012 is anticipated to be positive, with
inflation levels moderating. Nevertheless, downside economic scenarios remain: a potential for
disruption from political instability in the Middle East; the U.S. deficit reduction has yet to be fully
addressed; and the European debt contagion remains the clearest threat to the global economy.
As such, recession is now forecasted for many countries across the region as austerity measures
are implemented. Recapitalization of the banking system and maintenance of banking liquidity are
key issues for the region, along with meaningful progress towards economic reform to provide a
platform for sustainable growth.
For real estate, the disparity in occupier and investor demand between prime and secondary assets widened in 2011 and is likely to continue to favor prime quality
defensive assets in 2012. Occupancy levels are generally anticipated to remain stable through 2012, albeit, secondary office and retail assets could show continued
weakness. Rental growth is generally likely to be weaker in 2012 than 2011. We highlight below some of the key themes that we might expect to see in fundamental real
estate performance in 2012:
•
•
Office: New office supply remains low across all key markets, with development finance very limited. However, moderating economic growth may supress corporate
occupier appetite in 2012. Rental growth in most major financial centres is likely to be much reduced with on-going banking sector employment consolidation.
Grade A office space in Japan is anticipated to continue to see a flight to quality in the aftermath of the earthquake. Singapore faces the additional challenge of
meaningful new supply for the next few years.
Retail: Many global retailers are still looking to expand. However, their requirements are specific and focused on the most productive high streets and malls. Prime retail
should continue to outperform, while the outlook for secondary or neighbourhood shops and malls remains cloudy. The impact of e-commerce may be growing in
significance as we see retailers adjusting format and square footage requirements. A higher degree of obsolescence is expected in secondary locations and centers.
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•
•
•
Residential: Relative outperformance is again anticipated from apartment markets in developed economies. U.S. apartment markets should continue to benefit from
weak trends for owner occupation, while German residential markets are benefiting from years of under-development and changing demographic patterns. In Asia,
policy measures introduced to cool residential markets have taken effect, with expectation of some price moderation, particularly in some of the top tier Chinese
cities. However, structural urbanization trends continue to offer support to this sector across most of the globe.
Industrial/Logistics: Given moderating global growth expectations, performance for industrial may be relatively weak. Skilled asset management remains the key to
returns from this high yield sector. Meanwhile, structural urbanization trends provide strong support for the sector in many parts of Asia. Demand for fulfilment
centers is a considerable positive as retailers reassess their storage needs away from prime retail sites.
Non-Core Sectors: Sectors such as student accommodation, data centers and healthcare are anticipated to continue to benefit from structural underprovision and
increased mainstream investor appetite.
Listed real estate companies remain well capitalized, with a global average of around 37% loan to value. Their balance sheet strength also means that they can be
acquisitive where opportunities present themselves. Corporate activity in the sector has been modest in 2011. Companies have generally sought only to incrementally
expand their portfolios rather than seeking to make aggressive acquisitions and have used modest amounts of new equity raised on the secondary markets to fund this. We
expect this trend to continue.
The spread between risk free rates and real estate investment yields remains wide and generally supportive for real estate investment, particularly in sectors or markets
where barriers to entry and residual land values are high. However, availability of debt financing for real estate investors has become more difficult in 2011 and may
deteriorate further before improving. There is also an expectation that debt lending margins required by banks may continue to rise as the bank recapitalization process
continues. Access to multiple sources of capital remains a key benefit and necessity for listed real estate companies.
Overall expectations for earnings growth among the global listed real estate companies are positive for 2012. This should also be reflected in dividend growth and
potentially rising payouts. Valuation among listed companies by reference to net asset value and cashflow based metrics currently appears fair to good by long-term
standards. Additionally, above average income yield opportunities and general stability of cashflow from real estate ought to provide some support for the sector against a
backdrop of continued economic instability.
13
Investment Appraisal
Quantity
Ticker
Cusip
9,582,458.41
-CASH-
CASHUSD00
Sedol
Security Description
Unit
Cost
Total
Cost
Current
Price
9,582,458
1.000
Accrued
Income
Market
Value
Unrealized
Gain/Loss
0
9,582,458
0
0
9,582,458
Percent
Assets
Dividend
Yield*
Short Term Investments
Cash Equivalents
CASH
1.00
Total Cash Equivalents
9,582,458
2.31
0.01
2.31
0.01
Equity Investments
Diversified
151,950.00
DLR US
183,816.00
VNO US
DIGITAL REALTY TRUST INC
929042109
2933632 VORNADO REALTY TRUST REIT
45.14
6,859,326
66.670
109,166
10,130,507
47.70
2.45
4.08
75.49
13,876,511
76.860
0
14,128,098
1.80
3.41
3.59
109,166
24,258,604
5.86
3.79
Total Diversified
20,735,837
Health Care
447,100.00
HCP US
40414L109
2417578 HCP INC
37.26
16,658,325
41.430
0
18,523,353
11.20
4.47
4.63
277,053.00
HCN US
42217K106
2440961 HEALTH CARE REIT INC
45.09
12,491,157
54.530
0
15,107,700
20.90
3.65
5.24
103,400.00
HR US
421946104
2417921 HEALTHCARE REALTY TRUST INC
17.39
1,798,303
18.590
0
1,922,206
6.90
0.46
6.46
151,400.00
SNH US
23.28
3,524,365
22.440
0
3,397,416
(3.60)
0.82
6.77
376,543.00
VTR US
49.96
18,813,193
55.130
0
20,758,816
10.30
5.01
4.17
0
59,709,491
14.42
4.81
SENIOR HSG PPTYS TRUST
92276F100
2927925 VENTAS INC
Total Health Care
53,285,343
Industrial/Office: Industrial
334,500.00
DCT US
584,122.00
PLD US
233153105
B1L5PD8 DCT INDUSTRIAL TRUST INC
PROLOGIS INC
4.90
1,640,511
5.120
23,415
1,712,640
4.40
0.41
5.47
30.42
17,767,561
28.590
0
16,700,048
(6.00)
4.03
3.92
23,415
18,412,688
4.45
4.06
0
7,078,254
1.71
5.64
0
7,078,254
1.71
5.64
2.84
Total Industrial/Office: Industrial
19,408,072
Industrial/Office: Mixed
587,407.00
DRE US
264411505
2284084 DUKE REALTY CORP
12.21
Total Industrial/Office: Mixed
7,171,600
12.050
7,171,600
(1.30)
Industrial/Office: Office
149,535.00
ARE US
63.80
9,539,731
68.970
73,272
10,313,429
8.10
2.49
172,714.00
BXP US
101121101
2019479 BOSTON PROPERTIES INC
ALEXANDRIA REAL EST EQUITIES
82.91
14,319,026
99.600
94,993
17,202,314
20.10
4.16
2.21
117,800.00
DEI US
25960P109
B1G3M58 DOUGLAS EMMETT INC
18.51
2,179,839
18.240
15,314
2,148,672
(1.40)
0.52
2.85
160,500.00
HIW US
431284108
2420640 HIGHWOODS PROPERTIES INC REIT
31.37
5,035,579
29.670
0
4,762,035
(5.40)
1.15
5.73
121,309.00
KRC US
49427F108
2495529 KILROY REALTY CORP
32.01
3,882,953
38.070
42,458
4,618,234
18.90
1.12
3.68
218,100.00
PDM US
720190206
B3M3278 PIEDMONT OFFICE REALTY TRU-A
18.74
4,086,999
17.040
0
3,716,424
(9.10)
0.90
7.39
74,203.00
SLG US
78440X101
2096847 SL GREEN REALTY CORP REIT
60.93
4,521,296
66.640
18,551
4,944,888
9.40
1.19
1.50
244,588
47,705,996
11.52
3.20
Total Industrial/Office: Office
Lodging - Resorts
* Estimate based on dividends and prices from IDC
14
43,565,423
Quantity
Ticker
483,954.00
DRH US
356,200.00
HT US
Cusip
252784301
Sedol
B090B96 DIAMONDROCK HOSPITALITY CO
HERSHA HOSPITALITY TRUST
Unit
Cost
Total
Cost
Current
Price
Accrued
Income
Market
Value
Unrealized
Gain/Loss
Percent
Assets
Dividend
Yield*
9.64
4,666,045
9.640
38,716
4,665,317
0
1.13
3.32
5.88
2,095,707
4.880
21,372
1,738,256
(17.10)
0.42
4.92
1,095,500.00
HST US
44107P104
2567503 HOST HOTELS & RESORTS INC
14.09
15,439,288
14.770
54,775
16,180,535
4.80
3.91
1.35
69,173.00
PEB US
70509V100
B4XBDV9 PEBBLEBROOK HOTEL TRUST
17.81
1,231,892
19.180
8,301
1,326,738
7.70
0.32
2.50
30,353.00
HOT US
85590A401
B12GHV2 STARWOOD HOTELS & RESORTS
57.02
1,730,789
47.970
0
1,456,033
(15.90)
0.35
1.04
228,800.00
SHO US
867892101
B034LG1 SUNSTONE HOTEL INVESTORS INC
6.01
1,374,066
8.150
0
1,864,720
35.70
0.45
0
123,164
27,231,599
6.58
1.86
Total Lodging - Resorts
26,537,787
Residential: Apartments
135,600.00
ACC US
024835100
B02H871 AMERICAN CAMPUS COMMUNITIES
118,160.00
AVB US
053484101
2131179 AVALONBAY COMMUNITIES INC
71,600.00
BRE US
05564E106
2075426 BRE PROPERTIES INC
104,820.00
CPT US
CAMDEN PROPERTY TRUST
35.83
4,858,451
41.960
0
5,689,776
17.10
1.37
3.22
105.21
12,431,513
130.600
105,458
15,431,696
24.10
3.73
2.73
45.85
3,282,851
50.480
0
3,614,368
10.10
0.87
2.97
45.47
4,766,369
62.240
51,754
6,523,997
36.90
1.58
3.15
302,349.00
EQR US
29476L107
2319157 EQUITY RESIDENTIAL
46.11
13,941,908
57.030
172,866
17,242,963
23.70
4.17
3.98
72,697.00
ESS US
297178105
2316619 ESSEX PROPERTY TRUST INC
90.61
6,587,045
140.510
75,605
10,214,655
55.10
2.47
2.96
93,400.00
MAA US
59522J103
2589132 MID-AMER APT CMNTYS INC
63.70
5,949,637
62.550
0
5,842,170
(1.80)
1.41
4.22
272,300.00
UDR US
902653104
2727910 UDR INC
24.78
6,747,343
25.100
0
6,834,730
1.30
1.65
3.43
405,682
71,394,356
17.25
3.34
20,213
3,594,591
0.87
2.25
20,213
3,594,591
0.87
2.25
0
5,922,310
1.43
5.84
0
5,922,310
1.43
5.84
Total Residential: Apartments
58,565,117
Residential: Manufactured Homes
53,900.00
ELS US
EQUITY LIFESTYLE PROPERTIES
67.40
Total Residential: Manufactured Homes
3,633,053
66.690
3,633,053
(1.10)
Retail: Freestanding
224,500.00
NNN US
637417106
2211811 NATIONAL RETAIL PROPERTIES INC
26.26
Total Retail: Freestanding
5,896,026
26.380
5,896,026
0.40
Retail: Regional Malls
118,500.00
CBL US
CBL & ASSOCIATES PROPERTIES
13.51
1,600,695
15.700
24,885
1,860,450
16.20
0.45
5.35
536,000.00
GGP US
GENERAL GROWTH PROPERTIES
15.34
8,222,801
15.020
53,600
8,050,720
(2.10)
1.94
2.66
220,928.00
MAC US
554382101
2543967 MACERICH COMPANY (THE)
35.41
7,822,782
50.600
0
11,178,957
42.90
2.70
4.35
307,232.00
SPG US
828806109
2812452 SIMON PROPERTY GROUP INC REIT
70.79
21,750,091
128.940
0
39,614,494
82.10
9.57
2.79
37,900.00
TCO US
876664103
2872252 TAUBMAN CENTERS INC REIT
53.87
2,041,735
62.100
0
2,353,590
15.30
0.57
2.90
78,485
63,058,211
15.23
3.13
Total Retail: Regional Malls
41,438,104
Retail: Shopping Centers
191,262.00
AKR US
105,500.00
DDR US
79,900.00
FRT US
004239109
2566522 ACADIA REALTY TRUST
DDR CORP
313747206
2333931 FEDERAL REALTY INVS TRUST
15
17.93
3,429,538
20.140
34,427
3,852,017
12.30
0.93
3.57
11.25
1,187,323
12.170
8,440
1,283,935
8.10
0.31
2.63
85.50
6,831,365
90.750
55,131
7,250,925
6.10
1.75
3.04
Quantity
Ticker
Cusip
Sedol
Unit
Cost
Total
Cost
Current
Price
Accrued
Income
Market
Value
Unrealized
Gain/Loss
Percent
Assets
Dividend
Yield*
430,500.00
KIM US
KIMCO REALTY CORP
17.10
7,362,816
16.240
81,795
6,991,320
(5.10)
1.69
4.68
149,520.00
REG US
REGENCY CENTERS CORP
36.07
5,393,584
37.620
0
5,624,942
4.30
1.36
4.92
281,307.00
ROIC US
10.40
2,925,962
11.840
0
3,330,675
13.80
0.80
4.05
82,100.00
SKT US
26.54
2,179,057
29.320
0
2,407,172
10.50
0.58
2.73
179,793
30,740,986
7.43
3.89
76131N101
B28YD08 RETAIL OPPORTUNITY INVESTMENTS CORP
TANGER FACTORY OUTLET CTRS INC
Total Retail: Shopping Centers
29,309,645
Self Storage Facilities
121,019.00
EXR US
EXTRA SPACE STORAGE INC
112,182.00
PSA US
PUBLIC STORAGE
82,200.00
SSS US
84610H108
2832212 SOVRAN SELF STORAGE INC REIT
18.07
2,186,260
24.230
0
2,932,290
34.10
0.71
2.31
112.75
12,647,966
134.460
0
15,083,992
19.30
3.64
2.83
3,168,493
42.670
0
3,507,474
10.70
0.85
4.22
0
21,523,756
5.20
2.99
4.60
38.55
Total Self Storage Facilities
18,002,719
Timber
189,913.00
PCL US
40.02
7,600,048
36.560
0
6,943,219
(8.70)
1.68
146,739.00
RYN US
754907103
2473138 RAYONIER INC
PLUM CREEK TIMBER CO INC
38.28
5,617,012
44.630
0
6,548,962
16.60
1.58
3.59
548,486.00
WY US
962166104
2958936 WEYERHAEUSER CO
22.54
12,362,702
18.670
0
10,240,234
(17.20)
2.47
3.21
0
Total Timber
Total Portfolio
16
23,732,414
5.73
3.72
353,128,488
25,579,762
1,184,505 404,363,256
97.69
3.58
362,710,946
1,184,505 413,945,715
100.00
3.50

Medamerica Retirement PS 401K Plan

Transcription

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