DXS and VCX have been our primary REIT exposures across our direct equity portfolio. They have good quality underlying assets (e.g. Chadstone, for VCX, and prime office assets for DXS) in sectors where sentiment had been badly damaged by the pandemic (e.g. work from home means the death of retail-in-person-shopping, and the death of the office).
We thought that narrative might be true, but valuations compensated us in the event it was correct (huge discounts at the time).
Subsequently, the future is now appearing better than that dismal prospect, and both valuations and sentiment are improving.
We remain happy holders in our direct equity portfolios.
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This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.
Please note that past performance is not a reliable indicator of future performance.
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