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Japan REITs

Japanese REITs are listed real estate investments that pay high dividends and pass through their rental income to investors. They can be viewed as a hybrid between equities and bonds as they must pay out most of the income received.

Strategy Description

“Buy land, they’re not making it anymore.” Japanese REITs are listed real estate investments that pay high dividends and pass through their rental income to investors. They can be viewed as a hybrid between equities and bonds as they must pay out most of the income received.

Real estate, by its very nature of being a physical and limited asset provides potential inflation protection for investors.  REITs benefit from inflation in 2 ways:

  • Capital appreciation the value of properties and land owned increases
  • Rent increases regularly negotiated leases can be increased in line with inflation

The portfolio targets Japanese exposure offering a wide variety of sub sectors in real estate.

We score ~1,000 real estate names on Value, Quality, Safety, Payout, Technical and Sentiment characteristics to build a portfolio that targets a yield upwards of 3% per year. This robust quantitative scoring process ensures lesser-known but still excellent real estate companies are included.

International investors can also access this strategy in a Global Exposure and a US Exposure

PrintFact Sheet

Portfolio Performance

20172018201920202021YTD
Portfolio (%)13.09-12.9231.47-12.0817.16-5.13
Annualized ReturnStandard DeviationDividend Yield
Portfolio12.01%23.35%4%

Allocation Breakdown

Asset Class


Equity99.5%
Fixed Income0
Commodities0
Cash0.5%

Geo


Japan100%

Sector


Diversified REITs41.19%
Industrial REITs36.68%
Office REITs10.76%
Residential REITs10.88%

Top Holdings

Asset ClassWeight (%)
1. Tokyu REIT Inc11.47%
2. Daito Trust Construction Co Ltd11.25%
3. Daiwa Securities Living Investments Corp10.74%
4. Mori Trust Sogo Reit Inc10.57%
5. Mitsubishi Estate Logistics REIT Investment Corp10.01%
6. NIPPON REIT Investment Corp9.40%
7. LaSalle Logiport REIT9.23%
8. Mitsui Fudosan Logistics Park Inc9.08%
9. Daiwa House Industry Co Ltd8.97%
10. GLP J-Reit8.77%