Kempen Global Property Fund NV - N

Profile

Kempen Global Property Fund N.V. (KGPF) has the objective to achieve strong relative investment results by investing in a concentrated portfolio of listed global property companies.

KGPF is managed on the basis of a bottom-up stock picking approach. KGPF's strategy is to exploit mispricings 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. The environmental, social and governance (ESG) criteria are incorporated in the investment process.

Management team

Jorrit Arissen, Egbert Nijmeijer, Lucas Vuurmans, Anna Niegowska, Robert Stenger, Mihail Tonchev

Performance per 2020-06-30 (rebased)

No chart data available

Performance per 2020-06-30

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  Fund Benchmark
1 month 1.0 % 1.6 %
3 months 6.4 % 7.5 %
This year -22.0 % -21.4 %
2017 2.2 % -3.1 %
2018 -1.0 % -0.9 %
2019 28.9 % 24.2 %
1 year (on annual basis) -14.3 % -15.1 %
3 years (on annual basis) i 0.9 % -1.1 %
5 years (on annual basis) i 3.5 % 1.1 %
Since inception (on annual basis) i 6.5 % 4.0 %
The results shown of the periods before 19 April 2017, the inception date of Kempen Global Property Fund N.V. Class N, are those of Kempen (Lux) Global Property Fund - Class I. Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. The performance figures shown in the graph are rebased. The value of your investments may fluctuate. Past performance provides no guarantee for the future. Due to Easter a deviating net asset value (NAV) is used for the calculation of the performance figures. The NAV is calculated based on the closing prices of the Fund investments per 29 March 2018 (Europe), the closing prices of 2 April 2018 (North America) and calculated based on ‘snapshots’ prices of 3 April 2018 (Asian and Pacific investments).
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 45.66 M 2020-06-30
Share class size
EUR 45.66 M 2020-06-30
Number of shares
2,506,641 2020-06-30
Net Asset Value
EUR 18.11 2020-08-12
Transaction price
EUR 18.16 2020-08-12
Morningstar rating â„¢

Fund characteristics per 2020-06-30

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  Fund Benchmark
Number of holdings 50 338
Dividend yield i 4.10 % 4.68 %
Weighted average market capitalization i EUR 11,107 M EUR 12,729 M
P/E ratio i 27.27 23.71
Active share i 72.58 %
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Property Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

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

Developments per 2020-06-30

KGPF posted a positive return during June but underperformed the benchmark. Underperformance stemmed largely from the UK as well as US Healthcare. In the UK our position in Workspace detracted from performance as the company may experience more short term uncertainty with respect to rent collections on its generally smaller tenant base. We do believe that the building types and locations of Workspace are going to be amongst the best long term positioned offices once the pandemic eases off and thus have been adding more to our holding. Once again, as we enter the second quarter earnings season we suspect that stock prices will gradually begin reverting closer to our estimated long term fundamentals. After several months of unprecedented negative economic headlines currently no bad news is seen as good news and herding behavior from investors causes for temporary mis-pricings. We continue to rotate the portfolio as and when volatility uncovers opportunities, but keep the large bulk of our focus to reassess and continuously challenge our estimates of fundamental value across the investment universe.

The month of June exhibited significant intramonth volatility for Global real estate but performance was positive at 2.3% for the month. Once again there was significant dispersion between the various clusters with US Retail and US Triple Net REITs returning 14% and 11% respectively yet US Hotels and Japan REOCs returning 5.2% and 5.6% respectively. The offices underperformance has stabilized over the monthe (US Offices +3%, European Offices +1%) despite headlines of the “death of office” having increased in frequency. For our thoughts on the future of offices please refer to our June Alpha REIT – “How will it work in the future?”

Across the European real estate markets we saw Vonovia continue its pan European residential expansion journey by purchasing a 2.6% stake in Dutch residential platform Vesteda during the month. The company now has interests in Germany, Austria, Sweden, Vonovia, France and the Netherlands. Cross border residential platforms have been very limited in the real estate space with Canada’s CAP REIT being a leading success case (via their IRES platform in Ireland and ERES primarily in the Netherlands). The Multi-Family real estate space is a highly local business with deep knowledge of various regulations and close relationships with municipalities being key for success, and for that a local team is almost always necessary. Vonovia’s winning formula of scale, renovations and good social responsibility leads us to believe that this expansion is another good move as well priced growth opportunities in affordable regulated German residential remain limited.

In the US, many real estate companies experienced a sharp rebound in share prices at the beginning of the month. Several quick thinking management teams were opportunistic to take advantage of the situation by issuing equity, whilst temporarily trading at premiums to NAV, to further strengthen the balance sheet. The management teams generally speak of gaining dry powder with the goal of chasing growth prospects, it is more likely that the companies are reinforcing their balance sheets for a potential strong second wave and further difficulties ahead. For example, US Gaming real estate owner VICI Properties (owner of Caeser’s Palace in Las Vegas amongst others) raised over $600m in equity at a small premium to NAV to help liquidity of its main tenant over generally favorable terms. In the US Triple Net Lease player Spirit Realty raised $298m, WP Carey raised $332m over the month and Lexington Realty also exercised its overallotment option on its May equity raise to bring the funds raised to $164m. In Canada, industrial asset owner Granite REIT raised CAD $290m well above NAV for acquisitions in the US.

As June is a relatively quiet period in terms of company news the markets turned to broader economic news. The debate over the length of the first wave of the Covid-19 pandemic has been reopened with certain nations showing still a high number of deaths and infections (namely clusters in the US and the UK). Furthermore, China and Singapore have shown a second wave of the pandemic with further lockdowns being imposed. In the case of China, early signs show that the country has managed to break a quick second spread but the full results are yet to be seen, especially bearing in mind the transparency from the country. The market’s attention has been set on whether further full lockdown measures will be imposed. Right now it seems unlikely that a full scale lockdown will be re-imposed in Europe or in the US as the economic cost would be disastrous and it is more likely that strict rules will remain in place as businesses remain open in some capacity. Governments did take more measures across borders with the aim to protect their own policies via further travel restrictions (e.g. EU bans travel form the US). Central banks remain committed to providing liquidity such that funds remain available for companies to pay their staff. The ultimate goal is that the millions unemployed on a temporary basis do not end up in that position permanently as this would carry a skyrocketing financial and social cost. In this context of abundant liquidity, real estate as an asset class remains well positioned despite several structural ongoing issues in several sectors (e.g. retail).

The month of June exhibited significant intramonth volatility for Global real estate but performance was positive at 2.3% for the month. Once again there was significant dispersion between the various clusters with US Retail and US Triple Net REITs returning 14% and 11% respectively yet US Hotels and Japan REOCs returning 5.2% and 5.6% respectively. The offices underperformance has stabilized over the monthe (US Offices +3%, European Offices +1%) despite headlines of the “death of office” having increased in frequency. For our thoughts on the future of offices please refer to our June Alpha REIT – “How will it work in the future?”

Across the European real estate markets we saw Vonovia continue its pan European residential expansion journey by purchasing a 2.6% stake in Dutch residential platform Vesteda during the month. The company now has interests in Germany, Austria, Sweden, Vonovia, France and the Netherlands. Cross border residential platforms have been very limited in the real estate space with Canada’s CAP REIT being a leading success case (via their IRES platform in Ireland and ERES primarily in the Netherlands). The Multi-Family real estate space is a highly local business with deep knowledge of various regulations and close relationships with municipalities being key for success, and for that a local team is almost always necessary. Vonovia’s winning formula of scale, renovations and good social responsibility leads us to believe that this expansion is another good move as well priced growth opportunities in affordable regulated German residential remain limited.

In the US, many real estate companies experienced a sharp rebound in share prices at the beginning of the month. Several quick thinking management teams were opportunistic to take advantage of the situation by issuing equity, whilst temporarily trading at premiums to NAV, to further strengthen the balance sheet. The management teams generally speak of gaining dry powder with the goal of chasing growth prospects, it is more likely that the companies are reinforcing their balance sheets for a potential strong second wave and further difficulties ahead. For example, US Gaming real estate owner VICI Properties (owner of Caeser’s Palace in Las Vegas amongst others) raised over $600m in equity at a small premium to NAV to help liquidity of its main tenant over generally favorable terms. In the US Triple Net Lease player Spirit Realty raised $298m, WP Carey raised $332m over the month and Lexington Realty also exercised its overallotment option on its May equity raise to bring the funds raised to $164m. In Canada, industrial asset owner Granite REIT raised CAD $290m well above NAV for acquisitions in the US.

As June is a relatively quiet period in terms of company news the markets turned to broader economic news. The debate over the length of the first wave of the Covid-19 pandemic has been reopened with certain nations showing still a high number of deaths and infections (namely clusters in the US and the UK). Furthermore, China and Singapore have shown a second wave of the pandemic with further lockdowns being imposed. In the case of China, early signs show that the country has managed to break a quick second spread but the full results are yet to be seen, especially bearing in mind the transparency from the country. The market’s attention has been set on whether further full lockdown measures will be imposed. Right now it seems unlikely that a full scale lockdown will be re-imposed in Europe or in the US as the economic cost would be disastrous and it is more likely that strict rules will remain in place as businesses remain open in some capacity. Governments did take more measures across borders with the aim to protect their own policies via further travel restrictions (e.g. EU bans travel form the US). Central banks remain committed to providing liquidity such that funds remain available for companies to pay their staff. The ultimate goal is that the millions unemployed on a temporary basis do not end up in that position permanently as this would carry a skyrocketing financial and social cost. In this context of abundant liquidity, real estate as an asset class remains well positioned despite several structural ongoing issues in several sectors (e.g. retail).

Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Property Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

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

Performance per 2020-06-30 (rebased)

No chart data available

Performance per 2020-06-30

Slide to see more
  Fund Benchmark
1 month 1.0 % 1.6 %
3 months 6.4 % 7.5 %
This year -22.0 % -21.4 %
2017 2.2 % -3.1 %
2018 -1.0 % -0.9 %
2019 28.9 % 24.2 %
1 year (on annual basis) -14.3 % -15.1 %
3 years (on annual basis) i 0.9 % -1.1 %
5 years (on annual basis) i 3.5 % 1.1 %
Since inception (on annual basis) i 6.5 % 4.0 %
The results shown of the periods before 19 April 2017, the inception date of Kempen Global Property Fund N.V. Class N, are those of Kempen (Lux) Global Property Fund - Class I. Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. The performance figures shown in the graph are rebased. The value of your investments may fluctuate. Past performance provides no guarantee for the future. Due to Easter a deviating net asset value (NAV) is used for the calculation of the performance figures. The NAV is calculated based on the closing prices of the Fund investments per 29 March 2018 (Europe), the closing prices of 2 April 2018 (North America) and calculated based on ‘snapshots’ prices of 3 April 2018 (Asian and Pacific investments).

Dividends

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Distributing
Yes
Last dividend
EUR 0.85
Ex-date last dividend
2020-02-13
Number of distributions per year
1
Dividend calendar

Risk analysis (ex post) per 2020-06-30

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  3 years Since inception
Maximum drawdown i -27.73 % -27.73 %
Tracking error i 2.33 % 2.12 %
Information ratio i 0.85 1.19
Beta i 0.97 0.98
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Property Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

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

Top 5 contribution (2020-06-30)

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  Contribution i Performance i
Wharf Real Estate 0.52 % 22.51 %
Realty Income 0.31 % 6.93 %
Federal Realty Investment Trust 0.24 % 6.96 %
STAG Industrial 0.23 % 8.78 %
Acadia Realty 0.22 % 9.32 %

Bottom 5 contribution (2020-06-30)

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  Contribution i Performance i
Workspace -0.31 % -11.94 %
Mitsubishi Estate -0.24 % -7.62 %
Orix Jreit -0.24 % -10.22 %
Host Hotels & Resorts -0.17 % -10.51 %
Mapletree Logistics Trust -0.14 % -5.06 %

Geographic allocation (2020-06-30)

54.0 %
United States
11.4 %
Japan
6.5 %
Hong Kong
5.2 %
Germany
4.4 %
United Kingdom
3.4 %
Singapore
3.3 %
Australia
2.7 %
Canada
2.4 %
France
2.0 %
Nordics
1.4 %
Belgium
1.4 %
Ireland
1.3 %
Switzerland
0.8 %
Other
Total
100 %

Top 10 holdings (2020-06-30)

4.1 %
Invitation Homes
4.1 %
Vonovia SE
3.9 %
Avalonbay Communities
3.9 %
Realty Income
3.2 %
Mitsubishi Estate
3.1 %
Federal Realty Investment Trust
3.1 %
Prologis
3.1 %
Healthcare Trust of America
3.0 %
STAG Industrial
3.0 %
CubeSmart
Total
34.6 %

Sector allocation (2020-06-30)

25.0 %
Offices
25.0 %
Residential
22.0 %
Industrials
16.0 %
Other
12.0 %
Retail
Total
100 %
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Property Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

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

 

SWING FACTORS

An overview of the current swing factors are available here.

Ongoing charges

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Management fee i
0.63 %
Service fee i
0.20 %
Expected ongoing charges i
0.84 %
Ongoing charges last financial year i
0.83 %
The Ongoing Charges Figure of the last financial year relates to 2018/2019.

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: 0.20%
Between EUR 200 million and EUR 700 million: 0.15%
>EUR 700 million: 0.10%

Other costs

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Upward swing factor i
0.25 %
Downward swing factor i
0.15 %
As of 2 March 2020 the swing factor has been adjusted from 0.25%/0.20% to 0.25%/0.15%.
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Property Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

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

Share class details

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Share class
N
Investor type
Institutional & Private
Distributing
Yes
Benchmark i
FTSE EPRA/NAREIT Developed Index
Investment category
Real Estate
Inception date
2017-04-19
May be offered to all investors in
The Netherlands
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
EUR
Administrator
BNP Paribas Securities Services S.C.A.
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
NL0012044739
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Property Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

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

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

Kempen's vision & mission

Kempen Capital Management is an asset manager that believes in stewardship and investment focusing on the long-term for the benefit of all stakeholders. Value creation is at the heart of the services we provide to our clients. We believe that being an engaged shareholder on environmental, social and governance (ESG) issues and retaining a long-term focus, is critical to helping our clients to preserve and create sustainable wealth that has positive real world impact and economic returns.

Kempen wide approach to responsible investment

We are committed to create sustainable alpha. The four pillars of our ESG-policy are:

  • ESG integration: Ensuring sustainability risks and opportunities are adequately considered in our investment analysis and processes.

  • Exclusion & avoidance: Not investing in companies involved in controversial activities or conduct.

  • Active ownership: Being responsible stewards of our clients’ capital and using our influence through engagement and voting to improve corporate behaviour on specific ESG issues and achieve positive change

  • Positive impact: Investing with an objective to achieve positive real world outcomes and impact, such as contributing to the UN Sustainable Development Goals.Â

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To put our mission and vision into practice we engage with our investee companies on a wide array of strategic, financial, and ESG topics. As an active owner we use our influence to improve our investee companies’ ESG performance.  This helps us address some of the most pressing and important sustainability issues facing business and the world. Our focus themes for engagement are: human rights, labour rights, climate change and governance.Â

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Through collaboration with other investors and industry think tanks we contribute to the development of principles and standards of corporate responsibility both at sector levels, as well as investee company level.

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Our full voting records are available here.

OUR FUND APPROACH TO RESPONSIBLE INVESTMENT

At Kempen, we manage several funds and mandates invested in listed Real Estate companies including the Global Property Fund[1] and the European Property Fund.

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Kempen’s ESG policy is implemented in our fund’s investment process by the following pillars: ESG Integration and Active ownership.

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Exclusion & Avoidance

In line with the general Kempen policy, the Global Property Fund and the European Property Fund excludes all companies on the KCM Exclusion- or Avoidance list.

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Companies that ‘Fail’ or are on ‘Watchlist’ marked against the criteria of the United Nations Global Compact are excluded.

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ESG integration

We believe financial and sustainability returns are indivisible and that those companies that can find the right balance between all stakeholders will drive value. Our ESG analysis for listed real estate companies includes:

  • Implementing our ESG quality score into the company score of each Real Estate company we model;

  • Monitoring the global investment universe on Real Estate companies that exhibit negative excesses, such as environmental pollution measured by CO2 emission levels to initiate engagement;

  • Benchmarking Real Estate companies against each other and visualising these results for our investment process and our clients in order to identify leaders and laggards;

  • Entering into dialogue with companies we invest in, to improve their ESG policies and practices;

  • Translating information of Real Estate company portfolios with lower sustainability scores into higher maintenance capex assumptions in our Kempen valuation models;

  • Offering product customisation to our clients who (for example) want to invest in lower CO2 emission Real Estate portfolios only.

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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.

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The figure 'How ESG is integrated in our investment process' shows how ESG is incorporated into the investment process. Note that we do not only invest in the ESG leaders but also in the laggards as the potential value to be unlocked by providing capital to those who need it the most is massive.

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Active ownership

As an active investor, the Real Estate funds also actively engage with companies on their strategic, financial and social responsibilities.

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Our engagements focus on those companies where we believe substantial value can be unlocked. Engagement can take place on a wide array of topics including:

  • Reducing CO2 intensity levels;

  • Reducing energy and water consumption;

  • Improving waste recycling;

  • Improving working conditions and human rights;

  • Improving governance structures;

  • Improving shareholder alignment;

  • Shifting remuneration policies from being linked to short term goals to long term targets

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You can find the engagement factsheet of Kojamo Oyj here.

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Our full ESG policy can be downloaded here.

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[1]Kempen (Lux) Global Property Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg.Â

Risks

For more information about the mid and long term risks associated with the investments:

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*

Although Kempen Capital Management N.V.’s information providers, including without limitation, MSCI ESG Research LLC and its affiliates (the “ESG Parties”), obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness of any data herein. None of the ESG Parties makes any express or implied warranties of any kind, and the ESG Parties hereby expressly disclaim all warranties of merchantability and fitness for a particular purpose, with respect to any data herein. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein. Further, without limiting any of the foregoing, in no event shall any of the ESG Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

ESG Report
Screening MSCI ESG research
Screening MSCI ESG research
UN global impact
How ESG is integrated ...
Bron EN
disclaimer
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Property Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

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