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 2019-04-30 (rebased)

No chart data available

Performance per 2019-04-30

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  Fund Benchmark
1 month -0.3 % -1.0 %
3 months 3.5 % 1.9 %
This year 14.9 % 12.4 %
2016 -3.8 % -5.3 %
2017 13.4 % 12.4 %
2018 -8.7 % -8.5 %
1 year (on annual basis) 3.5 % 1.9 %
3 years (on annual basis) i 4.9 % 4.0 %
5 years (on annual basis) i 9.6 % 8.2 %
Since inception (on annual basis) i 5.9 % 8.0 %
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 273.36 M 2019-04-30
Share class size
EUR 273.36 M 2019-04-30
Number of shares
15,901,510 2019-04-30
Net Asset Value i
EUR 17.21 2019-05-24
Transaction price i
EUR 17.28 2019-05-24
Morningstar rating â„¢

Fund characteristics per 2019-04-30

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  Fund Benchmark
Number of holdings 28 108
Dividend yield i 2.53 % 3.44 %
Weighted average market capitalization i EUR 9,129 M EUR 9,440 M
P/E ratio i 17.08 14.88
Active share i 53.74 %
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 2019-04-30

KEPF posted a more or less flat return during April, outperforming its benchmark. During the month relative performance was mostly driven by the United Kingdom. The recently added overweight position in student housing fund Unite Group PLC added to the relative performance. In addition, Grainger PLC attributed to the relative returns. There was no company specific news flow. Returns were driven by the quality of these real estate platforms generating healthy income growth at still reasonable valuations.

First quarter 2019 results figures are being published by real estate companies currently. The published results generally live-up to our modelled figures and few surprises were noted so far. In general that means approximately 2% like-for-like rental growth supporting current real estate valuations and contributing to our expected total return of approximately 7% for European real estate markets.

UK retail company Intu Properties replaced their CEO with the CFO and are trying to reduce the high amount of leverage that is hampering the company in the weak UK retail environment. The new CEO immediately reduced the like-for-like rental income growth expectation for 2019 to -4% to -6%. A far better reflection of what is going on in the UK retail environment at the moment. Retail landlords are forced by retailers to bring down rents to more affordable levels and contribute to the survival of retailers. Intu specifically is undertaking this challenge with way too high leverage on its balance sheet (close to 70% on our numbers) and is a forced seller of assets in the investment market. The risk of a bankruptcy cannot be excluded. The Kempen European Property strategy does not hold a position in Intu Properties nor has it done so in the past.

Portfolio developments per 2019-04-30

The Kempen real estate investment strategy strikes the balance between qualitative and quantitative analysis. Through application of data-analysis technology our Real Estate Team collects over 20 million relevant data points for 200,000 real estate buildings around the globe, processing this quantitative data in our data infrastructure and turning it into valuable fundamental investment information. The continuous increase in available data helps us make better assessments of the quality, value and risk of each real estate investment. This leads to better investment decisions and results in higher investment returns at lower risk for our clients.

Next to the quantitative approach the investment strategy contains three key qualitative parameters that determine the warranted valuation: management added value, balance sheet strength and ESG. The portfolio managers score each company covered on these three parameters. Companies that excel in ESG for example will be assigned a higher score and hence the warranted valuation for an investment increases.

Portfolio construction of the Strategy 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 macroeconomic exposure versus the benchmark. KEPF assigns its risk budget on the real estate portfolio level only.

During the month changes were made to the portfolio. In the cluster Switzerland the weight of Mobimo was reduced and proceeds reinvested into PSP Swiss Property. In the cluster European offices the weight in Spanish office fund Colonial was increased at the expense of German office fund Alstria. These changes were valuation driven.
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 2019-04-30 (rebased)

No chart data available

Performance per 2019-04-30

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  Fund Benchmark
1 month -0.3 % -1.0 %
3 months 3.5 % 1.9 %
This year 14.9 % 12.4 %
2016 -3.8 % -5.3 %
2017 13.4 % 12.4 %
2018 -8.7 % -8.5 %
1 year (on annual basis) 3.5 % 1.9 %
3 years (on annual basis) i 4.9 % 4.0 %
5 years (on annual basis) i 9.6 % 8.2 %
Since inception (on annual basis) i 5.9 % 8.0 %
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 0.57
Ex-date last dividend
2019-02-13
Number of distributions per year
1
Dividend calendar

Risk analysis (ex post) per 2019-04-30

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  3 years Since inception
Maximum drawdown i -12.15 % -74.77 %
Tracking error i 1.92 % 4.59 %
Information ratio i 0.46 -0.45
Beta i 1.03 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.

Top 5 contribution (2019-04-30)

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  Contribution i Performance i
Unibail-Rodamco-Westfield 0.44 % 4.84 %
Safestore 0.26 % 8.10 %
Grainger Trust 0.23 % 6.76 %
Hibernia Reit 0.20 % 7.04 %
Unite Group 0.19 % 5.08 %

Bottom 5 contribution (2019-04-30)

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  Contribution i Performance i
Deutsche Wohnen -0.67 % -7.26 %
Vonovia SE -0.23 % -3.79 %
Vastned Retail -0.18 % -5.70 %
Hufvudstaden -0.12 % -4.11 %
Fabege -0.12 % -2.67 %

Geographic allocation (2019-04-30)

27.4 %
United Kingdom
22.9 %
Germany
13.2 %
Nordics
12.5 %
The Netherlands
8.7 %
France
5.3 %
Switzerland
3.3 %
Belgium
3.0 %
Ireland
3.0 %
Spain
0.8 %
Other
Total
100 %
On basis of country of exchange of the investments. The cash position is included in ‘Other’.

Top 10 holdings (2019-04-30)

9.5 %
Unibail-Rodamco-Westfield
9.1 %
Deutsche Wohnen
7.9 %
Gecina
6.7 %
Segro
5.9 %
Vonovia SE
4.5 %
Fabege
4.1 %
Derwent London
3.9 %
Unite Group
3.7 %
Grainger Trust
3.5 %
Big Yellow
Total
58.8 %

Sector allocation (2019-04-30)

30.5 %
Residential
27.6 %
Offices
18.0 %
Industrials
17.6 %
Retail
6.3 %
Other
Total
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
0.20 %
Expected ongoing charges i
0,83 %
Ongoing charges last financial year i
0.88 %
The Ongoing Charges Figure of the last financial year relates to 2017/2018.

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%
The service fee has been decreased by 0.05% as of 1 October 2018. The expected ongoing charge factor of Fiscal Year 2018/2019 is therefore also decreased by 0.05%.

Other costs

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Upward swing factor i
0.40 %
Downward swing factor i
0.15 %
As of 14 January 2019 the swing factor has been adjusted from 0.40%/0.20% to 0.40%/0.15%.
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.
Depositary and 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.