Kempen European Property Fund NV

Profile

Kempen European Property Fund N.V. (KEPF) has the objective to achieve strong relative investment results by investing in a portfolio of listed European property companies. KEPF is managed on the basis of a bottom-up stock picking approach.

KEPF's strategy is to exploit mispricing between the valuation of property companies in relation to the quality of their real estate portfolios, balance sheets, corporate governance and management capability to add value to the property portfolio.

Management team

Matthijs Storm, Egbert Nijmeijer, Lucas Vuurmans, Anna Niegowska, Jorrit Arissen, Dan Petrisor

Performance per 2018-06-30 (rebased)

No chart data available

Performance per 2018-06-30

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  Fund Benchmark
1 month 1.6 % 0.3 %
3 months 5.9 % 5.0 %
This year 3.1 % 1.6 %
2015 21.5 % 18.0 %
2016 -3.8 % -5.3 %
2017 13.4 % 12.4 %
1 year (on annual basis) 11.5 % 8.8 %
3 years (on annual basis) i 6.5 % 4.8 %
5 years (on annual basis) i 13.0 % 11.5 %
Since inception (on annual basis) i 6.1 % 8.3 %
Untill 2014 the benchmark was the GPR 250 Europe Index, in which the UK component was reduced to 20%. Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. The value of your investments may fluctuate. Past performance provides no guarantee for the future.
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 362.58 M 2018-06-30
Share class size
EUR 362.58 M 2018-06-30
Number of shares
20,748,175 2018-06-30
Net Asset Value i
EUR 17.53 2018-07-18
Transaction price i
EUR 17.49 2018-07-18
Morningstar rating â„¢

Fund characteristics per 2018-06-30

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  Fund Benchmark
Number of holdings 31 107
Dividend yield i 2.92 % 3.21 %
Weighted average market capitalization i EUR 7,562 M EUR 8,669 M
P/E ratio i 3.80 7.60
Active share i 55.45 %
Kempen Capital Management NV (KCM) is the management company of Kempen European Property Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Market developments per 2018-06-30

European property stocks were up in June, with KEPF outperforming its benchmark. Positive relative performancewas generated from the clusters European residential and United Kingdom. KEPF participated in the IPO of Koyamo, Finland’s largest private residential real estate owner. We travelled to Helsinki for meeting the management team and Board and analyzed their residential portfolio. We engaged the Board on the fact that the Board would not have an independent majority after the IPO. Two other investors also engaged and the Board decided to draft a statement in which they guided upcoming improvements during the next AGM. Based on this final improvement we decided to participate in the IPO. This is a good example of our active shareholder ship and our investment process which integrates ESG.

June returns were again positive and real estate continues to show positive returns in 2018. Most real estate clusters continue to show strong operational progress. Industrial, residential and niche segments like storage, student housing, healthcare all do well. The real estate sector also continues to grow in size through new IPOs. Public Storage for example announced it will list its European storage business Shurguard. And in Spain several IPOs (Testa, Haya, Via Celere, and Azora) are being explored.

Retail real estate is still the exemption. We further lowered our rental growth expectations for UK retail real estate. The UK retail sector continues to face store closures and retailers negotiating rents down in order to keep financially solvent.

Portfolio developments per 2018-06-30

Portfolio construction of KEPF is based on cluster neutrality. The European portfolio has 6 clusters defined as homogeneous groups of real estate companies with similar underlying currency exposure. Examples are United Kingdom, European residential and Switzerland. The portfolio weight of each cluster is approximately equal to the cluster’s benchmark weight. This ensures a diversified portfolio and neutralizes currency and macro-economic exposure versus the benchmark. KEPF assigns its risk budget on the real estate company level and is positioned towards companies with strong balance sheets and management teams with proven track records in NAV creation, and avoids property developers without stable income from an investment portfolio.

In the Nordics cluster we reduced weight in Fabege and moved this to Wihlborgs. In European offices the position in NSI was reduced and reinvested in Gecina. All changes were valuation driven as no changes were made to the underlying investment cases.
Kempen Capital Management NV (KCM) is the management company of Kempen European Property Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Performance per 2018-06-30 (rebased)

No chart data available

Performance per 2018-06-30

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  Fund Benchmark
1 month 1.6 % 0.3 %
3 months 5.9 % 5.0 %
This year 3.1 % 1.6 %
2015 21.5 % 18.0 %
2016 -3.8 % -5.3 %
2017 13.4 % 12.4 %
1 year (on annual basis) 11.5 % 8.8 %
3 years (on annual basis) i 6.5 % 4.8 %
5 years (on annual basis) i 13.0 % 11.5 %
Since inception (on annual basis) i 6.1 % 8.3 %
Untill 2014 the benchmark was the GPR 250 Europe Index, in which the UK component was reduced to 20%. Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. The value of your investments may fluctuate. Past performance provides no guarantee for the future.

Dividends

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Distributing
Yes
Last dividend
EUR 0.62
Ex-date last dividend
2018-02-05
Number of distributions per year
1
Dividend calendar

Risk analysis (ex post) per 2018-06-30

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  3 years Since inception
Maximum drawdown i -12.65 % -74.77 %
Tracking error i 1.77 % 4.68 %
Information ratio i 0.95 -0.47
Beta i 1.01 1.05
Kempen Capital Management NV (KCM) is the management company of Kempen European Property Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Geographic allocation (2018-06-30)

27.4 %
United Kingdom
20.9 %
Germany
15.8 %
The Netherlands
12.7 %
Nordics
10.5 %
France
5.2 %
Switzerland
2.6 %
Ireland
2.3 %
Belgium
1.7 %
Spain
0.9 %
Other
Totaal
100 %
On basis of country of exchange of the investments. The cash position is included in ‘Other’.

Top 10 holdings (2018-06-30)

9.6 %
Deutsche Wohnen
8.9 %
Unibail-Rodamco-Westfield
8.2 %
Gecina
8.0 %
Land Securities
4.5 %
Vonovia SE
4.4 %
PSP Swiss Property
4.3 %
Derwent London
4.3 %
Tritax Big Box REIT
4.2 %
Kojamo OYJ
3.5 %
Big Yellow
Totaal
59.9 %

Sector allocation (2018-06-30)

29.7 %
Residential
28.7 %
Offices
23.4 %
Retail
11.9 %
Industrials
6.3 %
Other
Totaal
100 %
On basis of 'look through' data. The cash position is not included.
Kempen Capital Management NV (KCM) is the management company of Kempen European Property Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Ongoing charges

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Management fee i
0.63 %
Service fee i
0.25 %
Expected ongoing charges i
0,88 %
Ongoing charges last financial year i
0.91 %
The Ongoing Charges Figure of the last financial year relates to 2016/2017.

The service fee is determined annually on basis of the net asset value as of the last day of the previous financial year:
< or equal to EUR 200 million: 0.25%
>EUR 200 million: 0.20%

Other costs

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Upward swing factor i
0.40 %
Downward swing factor i
0.20 %
As of 1 January 2018 the swing factor has been adjusted from 0.35%/0.35% to 0.40%/0.20%.
Kempen Capital Management NV (KCM) is the management company of Kempen European Property Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Share class details

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Investor type
Institutional & Private
Distributing
Yes
Benchmark i
FTSE EPRA/NAREIT Developed Europe Index (dividends reinvested)
Investment category
Real Estate
Universum
European real estate equities
Inception date
2000-10-26
Domicile
The Netherlands
May be offered to all investors in
The Netherlands
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
EUR
Management company
Kempen Capital Management N.V.
Custodian
BNP Paribas Securities Services S.C.A.
Morningstar rating â„¢

Tradability

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Listed
yes, listed on the NAV Trading Facility of Euronext
Subscription/Redemption Frequency
Daily
ISIN i
NL0009296649
Kempen Capital Management NV (KCM) is the management company of Kempen European Property Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.
Kempen Capital Management NV (KCM) is the management company of Kempen European Property Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

KCM Vision

Kempen Capital Management is an asset manager with a long-term investment approach. We strongly believe in engaged shareholdership that benefits all stakeholders. As a long-term responsible investor, we firmly believe that active ownership and shareholder engagement contribute to positive change across the board.

Our KCM wide approach to responsible investment

To put our vision into action we engage with our investment targets on a wide array of strategic, financial, environmental, social and governance (ESG) topics. Our long-term investment worldview paired with thorough analysis and an experienced and diverse ESG team allow us to use both voting and engagement as means to consistently encourage positive change. Through this process of constructive engagement, we are able to contribute to the development of principles and standards of corporate responsibility within companies that we invest in. Our full voting records are available here.

Our fund approach to Responsible Investment

ESG is fully integrated in our investment process for the real estate funds. We believe financial and sustainability returns are indivisible and that those companies that can find the right balance between all stakeholders will drive value. In our investment framework there are three key aspects we look at in determining the warranted valuation: management value add, balance sheet and ESG. We are willing to pay up for those companies that excel in ESG. This believe is underpinned by academic literature.

We track the CO2 intensity for all companies in our universe and use this information to for our assumption for capital expenditure in valuing the real estate portfolio. We do not only invest in the ESG leaders but also in the laggards as we the potential value to be unlocked by providing capital to those who need it the most is massive

Kempen Capital Management NV (KCM) is the management company of Kempen European Property Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.