Real estate is a continuously evolving asset class with structural trends creating opportunities in parts of the market and challenges in others.
Increasingly sophisticated technology, rapid urbanisation and shifts in demographics have fundamentally changed consumer behaviours and altered the needs and uses for real estate. This evolution gives rise to opportunities for investors to benefit from the ongoing divergence across property types, underpinning the need for an active and selective investment approach.
Powerful long-term themes shaping the sector
Digitalisation
Rapid development of AI and rising mobile data consumption are fuelling demand for more data storage, higher computing power and cloud infrastructure, which is translating into pricing power for data centres and cell towers. The Global DataSphere* is expected to more than double in size from 2022 to 2026 according to IDC.
* The Global DataSphere is a measure of how much data is created, captured, replicated and consumed each year. IDC = International Data Corporation
Shifting demographics
Accelerating innovation in medicine, a growing middle class and ageing populations are driving long-term growth in healthcare, and with it demand for lab space and senior housing. The number of Americans aged 65 and older is projected to nearly double from 52 million in 2018 to 95 million by 2060.*
* U.S. Census Bureau, Population Projections.
Sustainability
Real estate is responsible for >1/3 of global energy use and carbon emissions*. The sector will therefore be a key focus in the pursuit of net zero ambitions.
Reducing carbon consumption and emissions related to the construction and operation of buildings makes financial sense. ‘Greener’ buildings can result in rental and sales premiums.
* International Energy Agency (IEA)
Convenience lifestyle
Demand for logistics and warehousing continues to be driven by the rise of ecommerce, geopolitics, nearshoring, and companies increasing stock levels to counter supply chain issues. Global ecommerce penetration is expected to grow from 57% in 2023 to 67% by 2027*.
*Statista forecast as at August 2023.
A differentiated approach to property investing
The Global Property Equities Team seeks to actively identify the real estate securities driving the future of the sector, without bias toward style, property type or market capitalisation. Our emphasis on local property market knowledge combined with a repeatable, disciplined investment process aims to pinpoint property companies and sectors that offer the best long-term growth potential.
Our funds are designed to:
Provide an accessible means for investors to diversify into real estate
Offer income and growth opportunities
Benefit from powerful long-term themes
View our property funds
Global Property Equities Fund
Actively managed, high-conviction fund focused on the managers’ best ideas in listed property stocks and REITs, and aiming to deliver long-term capital appreciation.
Marketing communication.
How do I use property in my portfolio?
Allocating to properties would result in an increase to the portfolio’s overall recurrent income, accompanied by higher sensitivity to rates and the market cycle, something that we advocate should be monitored constantly.
— Matthew Bullock
EMEA Head of Portfolio Construction and Strategy
Why invest in property with Janus Henderson?
True active
management
We take a more active approach than many property equities managers, with an active share typically greater than 70%*
*Source: Janus Henderson. Based on our Global Property Equities Strategy.
Global team,
local expertise
Team of property experts on the ground in Europe, Asia and North America, leveraging local insights and industry relationships.
Differentiated
approach
Focused on opportunities across the asset class including alternative uses of property and non-benchmark sectors
Insights
Meet the team
Access transformational change with thematic investing. Thematic investing enables investors to benefit from the powerful megatrends that are disrupting and shaping the future, unlocking the potential for stronger and more consistent returns.