Resolution Capital is a specialist global real estate securities manager with a successful long-term investment track record and ardent culture of fiduciary responsibility. The firm was established in 2004 and is headquartered in Sydney, Australia and maintains an office in New York. We believe that listed real estate is an excellent means of gaining exposure to the underlying returns of some of the world’s highest quality real estate assets in a simple, transparent, liquid and tax efficient form.
We are a value orientated investment manager with the objective of delivering superior risk adjusted long term returns, compared with recognised industry benchmarks. This is achieved through investment in a concentrated portfolio of carefully selected listed real estate securities with an emphasis on avoiding fundamental flaws, which could reasonably result in permanent impairment of the underlying investments. This aligns our investment process and security selection with clients’ objectives of long term real wealth creation and avoids the culture of index hugging.
Resolution Capital invests in a select and diverse group of real estate platforms capable of generating superior risk adjusted returns for investors. We are intent on identifying and avoiding factors in our stock selection which could reasonably result in permanent capital impairment of the underlying investments. We believe that the ultimate driver of real estate securities is the quality and level of sustainable cash earnings generated by the underlying properties.
Primarily through bottom up research, Resolution Capital seeks to identify and invest in a select group of high quality stocks which afford unique characteristics that the market continues to under appreciate. The stringent filtering process focuses on identifying and exploiting three key attributes:
1. High barrier property markets where landlords have pricing power; and
2. Strong balance sheets which can successfully withstand and exploit market cycles; and
3. Management teams with skill, discipline and alignment.
To ensure focus on these attributes, the team adopts a concentrated approach that invests in no more than 60 stocks at any one time.
The bottom up analysis is reviewed in conjunction with the identification of ‘top down’, broader investment and direct real estate specific themes e.g. macro-economic conditions, demand and supply levels, construction costs etc, which may influence the risk level of the stock. Supporting the bottom up philosophy is the division of research responsibilities amongst the investment team by sector, rather than region. Our investment team members are specialists in their respective sectors, having travelled widely and been exposed to world best practices in the retail, office, residential, industrial, hotel, self storage and data centres sectors. They are uniquely equipped to evaluate companies and their management teams against global peers.
By adopting this philosophy, Resolution Capital believes it can create a portfolio which has the greatest prospect of delivering returns above inflation and consistent, sustainable, long term out-performance.
Resolution Capital has a long history of taking a responsible approach to investing our clients’ funds placing paramount importance on protecting our clients’ interests. Resolution Capital has an ESG policy, covering aspects of Environmental, Social and Governance issues relevant to its investment and business management process.
Resolution Capital’s investment team is engaged in collecting and assessing ESG considerations for use in our investment process. Within ESG, we discuss governance considerations more frequently and these are often a key determinant in investment decisions. We take an active role in discussing governance standards with companies, including both those in which we invest, as well as ones where we have no current investment. We also seek to invest in companies with a ‘best practices’ approach to optimising outcomes for all stakeholders as we believe these companies will outperform over time. We monitor environmental efficiency which impacts leaseability, rental rates and operating expense ratios, which are vital inputs into our investment decisions.
Resolution Capital is a signatory to the United Nations initiated Principles for Responsible Investment (www.unpri.org), which promotes the inclusion of ESG issues into investment analysis and decision making processes. Resolution Capital is also a member of ESG Research Australia, an organisation whose members include superannuation funds, asset and investment managers as well as a number of consultants to the investment funds industry. The purpose of this body is to encourage greater awareness and analysis within the investment research community of ESG issues impacting the investment. As part of Resolution Capital’s ESG policy, we are a strong supporter of our local community, along with any other community that is in need.
It is the policy of Resolution Capital to vote on those resolutions it believes may have a material effect on security holders. The table below shows the extent to which we have exercised our vote in recent times: