Australian Listed Property Trust portfolio

Australian Listed Property Trust Portfolio

We have a strong history of successfully implementing our investment process to the Australian listed property trust sector.

When applied to listed property trusts, our investment philosophy of buying quality stocks at reasonable prices is informed further by identifying those securities which have low debt levels, quality management with strong track records, stable investment portfolios and high yield with a history of distribution growth.

Portfolio overview

The Australian Listed Property Trust Portfolio is designed for investors who seek an active but disciplined exposure to Australian listed property trusts.

  • Portfolio profile: Medium to long-term capital growth through active management
  • Benchmark: S&P/ASX 200A-REIT Accumulation Index
  • Investment objective: To outperform the S&P/ASX 200 A-REIT Accumulation Index by 4% p.a. over a rolling three-year period
  • Investable universe: ASX listed securities with a focus on S&P/ASX 200 A-REITs
  • Number of stocks: 4–8
  • Asset allocation: Australian A-REIT’s 80%–100%, Cash 0%–20%
  • Portfolio stock limit: 35% maximum weighting
  • Portfolio managers: Jamie Nicol (Chief Investment Officer), Scott Bender (Portfolio Manager)

Investment philosophy

DNR Capital believes that quality companies outperform through the cycle and focuses on identifying those quality companies that can defend and grow their business and purchases them when they are trading below intrinsic value. By maintaining a strong valuation discipline with a medium-term focus, DNR Capital looks to identify those stocks where the current price does not fully reflect the intrinsic value.

Investment strategy

The investment process uses a combination of bottom-up stock selection with a top-down overlay.

The bottom-up stock selection process will favour stocks with the following characteristics:

  • Strong underlying assets—DNR Capital believes higher quality assets will outperform through the business cycle both in terms of capital appreciation and yield growth.
  • Low-debt to medium-debt levels—DNR Capital invests in securities where the debt profile is appropriate given the quantum and nature of cash flow produced from the underlying portfolio.
  • High-quality management with a strong track record of delivering asset and share price performance.
  • Stable portfolio investment strategy—DNR Capital believes a changing asset mix can be a signal of problems or poor management.

DNR Capital follows a range of economic indicators that are reviewed regularly from a top-down portfolio perspective. These measures are used to formulate an economic overview which provides a backdrop to investment decision making and influences portfolio construction.

For more information on the Australian Listed Property Trust Portfolio, please contact us on info@dnrcapital.com.au or refer to our monthly update below:

Click here to download the Australian Listed Property Trust Portfolio monthly update.

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