Welcome to Perennial Real Estate
Perennial Real Estate was established in January 2006 in a joint venture between Perennial Investment Partners Limited and Perennial Real Estate investment staff.Perennial Real Estate is an active property securities manager employing a bottom-up stock selection process.
A bottom up approach is one where companies are considered on their own merit, by taking into account factors such as management and the business model as well as other characteristics. Perennial Real Estate seeks to buy listed property securities that offer good cashflow growth and consistent income generating characteristics. Perennial Real Estate has the underlying belief that these securities will offer investors the best absolute long-term investment outcomes for their clients.
Perennial Real Estate Investment Process
Investment Philosophy
Perennial Real Estate is a specialist active global property securities investment manager. Perennial Real Estate holds the belief that investment markets are not fully efficient as asset prices are sometimes driven by irrational influences. Perennial Real Estate aims to buy global listed, or soon to be listed, property securities that offer good cashflow growth and consistent income characteristics. Perennial Real Estate has the underlying belief that these entities will offer investors the best long-term property investment outcomes. The portfolio is biased towards securities that offer strong recurring cash flows and hold quality investment grade property assets.
Stock Selection Process
Perennial Real Estate is an active manager of global listed property securities and believes that 100% of outperformance is due to security selection. The Perennial Real Estate team apply a combination of top-down macro analysis and forecasting, and bottom-up stock picking. Perennial Real Estate does not attempt to replicate the regional or structural bias of any index. This flexibility allows the investment team to identify and capitalise on individual opportunities presented in the market to produce a quality total return outcome for investors.
The investment process begins with the screening of property securities, initially screened for risk, liquidity, debt levels and cash flow earnings growth. Perennial Real Estate places a great emphasis on direct company and industry contacts and is an integral part of the investment process. Perennial Real Estate endeavours to model approximately 150 securities.
Perennial Real Estate's stringent investment process ensures that the portfolio will consist of property securities that offer investors the following characteristics:
- strong recurring cash flows;
- high quality real estate;
- strong balance sheet;
- good earnings growth;
- high credit quality; and
- weighted towards the strongest property markets.
The final portfolio is constructed according to a strict risk management and compliance regime. The main driver of Perennial Real Estate's portfolio construction process is the team's desire to deliver investors a portfolio of good quality property securities.
Perennial Real Estate manages the following portfolios:
- Perennial Global Property Securities
- Perennial Australian Listed Property Securities
Headed by Stephen Hayes, Perennial Real Estate consists of eleven Portfolio Managers and Analysts situated in Australia, US, Hong Kong, and the Netherlands. Perennial Real Estate boasts a very experienced team, of which seven members of the team are at Portfolio Management level or above. This ensures a more thorough research and modelling process and robust portfolio construction decisions.
