Hazelview (formerly known as Timbercreek) Global Real Estate 2021 Update

The Hazelview Four Quadrant Real Estate Partnership is invested in a globally diversified integrated real estate portfolio comprised of Private Real Estate, Private Real Estate Debt, Public REIT's & Preferred Share REIT's.

As a whole, real estate investments were indiscriminately sold during the height of the early days of the pandemic. In March of 2020, the Hazelview portfolio experienced its worst down month since it's 2014 inception, losing -9.08% of value. The rest of the year saw steady recovery with the fund showing a modest growth of 0.72% for the year.

From Feb 14 to March 23, Global REITS were down -43%. During the massive fiscal & monetary policy stimulus in the 2nd & 3rd quarters, 190 Central Banks cut rates and provided huge liquidity by purchasing $1.3Bil in assets every hour, thus propping up global stock markets.

With weekly news of a vaccine and a potential return to normalcy, from November 9th to December 31st, global REITs gained 11% to finish the year as a group still down -8.2%. 

Last year, the global REITs sector hugely underperformed global equities. Currently, global REIT share prices are at 88% of their pre-COVID levels. These are unprecedented valuations with global REITs at their cheapest level relative to global equities in nearly 2 decades. 

Hazelview Managers are anticipating a 2 year recovery period, already underway, which equates to annualized returns of 15 - 20% in 2021 & 2022. They have the portfolio positioned to take advantage of opportunities seen in areas such as data centres, industrial buildings, self-storage, open air retailers and cell towers. The management team continues to be active on the transaction front. 

To learn more about Management Views & their Future Outlook, the full report can be found here:
 

A note from Wynn

The Hazelview Four Quadrant Global Real Estate Fund serves a dual purpose in our portfolios, fitting in both the “Fixed Income” and the “Alternatives/Volatility Protection” buckets.

The targeted annual distribution of 5%, paid monthly, replenishes income and bolsters cash reserves. At the same time, by investing opportunistically in real estate projects to fix, re-lease and re-capitalize, there is also an expectation of making above average capital gain returns in the long term.
 

Considered to be non-correlated to the main markets, investments in the portfolio of public REITs, private real estate, private real estate debt and preferred share REITs should offer "volatility protection" during a negative market cycle.

As always, should you have any questions, please reach out.


Warm regards,

Wynn A. Harvey BBA, CIM, CPCA, CDFA
Director, Wealth Management
Portfolio Manager, Investment Advisor
Tel.: 416.572.5530 • TF: 1.866.775.7704 • F: 416.864.9888

Wynn.Harvey@RichardsonWealth.com
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