| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 5.9% | -2.1% | 5.9% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 5.9% | 0.9% | 7.2% | -24.2% | 22.4% | 1.0% |
The Easterly Global Real Estate Fund posted a -2.11% return in Q4 2025, underperforming the FTSE EPRA Nareit Developed Net Index by 138 basis points amid macroeconomic uncertainty. Despite headwinds, the manager maintains a constructive outlook based on improving real estate fundamentals. Interest rate stabilization around 4-4.5% on the 10-year Treasury has removed a major headwind for REITs, while construction of new space remains near historical lows due to supply chain disruptions, labor constraints, and higher input costs from tariffs. This environment conveys incremental pricing power to owners of existing assets. The fund continues to favor property types with supply-demand imbalances favoring landlords, including data centers, healthcare, student housing, and industrial/logistics properties. Key contributors included Primary Health Properties, Hong Kong Land Holdings, and Iron Mountain, while detractors included Unite Group, Prologis, and American Tower. The manager believes market conditions of higher volatility play to their strength through domain expertise and nimble positioning to capitalize on market inefficiencies.
Global real estate fundamentals are improving with low supply and high construction costs conveying pricing power to landlords, while interest rate stabilization removes a major headwind for REITs.
The global REIT market enters 2026 against a backdrop of mixed macroeconomic signals, but fundamentals are gradually improving with leasing activity recovering, transaction volumes rising, and capital becoming more discriminating. The outlook is increasingly constructive despite lingering uncertainty.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 4 2026 | 2025 Q4 | 0012.HK, AMT, IRM, PLD, PW.L, UTG.L | Construction, fundamentals, global, interest rates, Property, real estate, REITs, supply | - | Global real estate fundamentals are improving with low supply and high construction costs conveying pricing power to landlords. REITs have historically delivered strong returns following Fed rate-hike cycles, and with rates stabilizing around 4-4.5%, REITs have shed a major headwind. Data centers are benefiting from durable secular drivers including digital infrastructure demand. The fund prefers this property type due to supply-demand imbalances that favor landlords and continued momentum in data center leasing with improving organic growth. Student housing is favored due to demographic tailwinds and post-pandemic recovery trends. However, demand from UK students was softer than expected, raising questions about affordability and management's forecasting ability. |
| Oct 22 2025 | 2025 Q3 | AMT, COLD, GMG AU, GRI LN, NXT AU, VTR | Data centers, Global REITs, interest rates, Property Fundamentals, supply constraints | - | The letter reviews a challenging quarter for global REITs despite improving fundamentals, as rate-sensitive assets lagged even while central banks signaled easing. Easterly highlights that stabilized interest rates, historically low new construction, and rising replacement costs are shifting pricing power back to landlords across select property types. The portfolio remains focused on specialty real estate segments such as data centers, cell towers, healthcare, and student housing, where supply-demand imbalances support long-term earnings growth. |
| Jul 30 2025 | 2025 Q2 | - | - | - | |
| May 7 2025 | 2025 Q1 | - | - | - | |
| Mar 16 2025 | 2024 Q4 | - | - | - | |
| Oct 24 2024 | 2024 Q3 | - | - | - | |
| Aug 9 2024 | 2024 Q2 | - | - | - | |
| Feb 29 2024 | 2023 Q4 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Data CentersSupply constraints curtailing infrastructure buildout rate, but compute capacity is being used immediately upon coming online. This differs from dot-com bubble when dark fiber was installed ahead of need. Labor, power and land shortages creating bottlenecks. |
Supply Constraints Utilization Bottlenecks Infrastructure |
Real EstateAlico continues as the fund's largest position, owning nearly 50,000 acres in Florida previously devoted to citrus farming. The company is undergoing strategic transformation, converting 75% of citrus acres to other agricultural purposes and 25% to higher and better use opportunities including residential and commercial developments. |
Land Development Agriculture | |
Student HousingStudent housing is favored due to demographic tailwinds and post-pandemic recovery trends. However, demand from UK students was softer than expected, raising questions about affordability and management's forecasting ability. |
Demographics Recovery Affordability UK Demand | |
| 2025 Q3 |
RatesFed cut rates by 25bps on December 10 while describing growth as moderate and inflation as still somewhat elevated. Markets took message as cut now, likely pause soon. The opportunity set was less about calling one Fed meeting and more about trading the path via rates and FX. |
Fed Easing Policy Duration Curve |
RealEstate |
||
Supply |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| 0012.HK | Hong Kong Land is a leading owner of office and retail assets primarily located in Hong Kong and Singapore, along with residential development activities in China and select ASEAN markets. Shares advanced following actions taken by the new management team to accelerate its Strategic Vision 2035, including the announcement of approximately $4.8 billion in planned asset divestments during the fourth quarter of 2025. |
| AMT | 3Q beat and raise was overshadowed by DISH (not held) claiming it should be excused from future lease payments and pressure to organic billing growth. REITs also faced pressure as long-term interest rates remained stubbornly high. |
| IRM | Shares of Iron Mountain Incorporated, a company that offers records storage management along with an evolving fast-growing data center segment, detracted from performance during the quarter after the company posted a disappointing quarter of new bookings within its higher growth data center business. While we disagree with the short report and believe the company has compelling long-term growth prospects, we harvested losses, exited our position, and reallocated capital to higher conviction ideas. |
| PLD | Best-in-class industrial REIT Prologis, Inc. contributed positively to performance during the fourth quarter, aided by the company's strong third quarter financial report, coupled with management's robust multi-year business outlook. We continue to believe the appreciation potential for Prologis' shares remains compelling given the strong runway for future cash flow and earnings growth in the next several years and an undemanding valuation. |
| PW.L | Primary Health Properties (PHP) is the UK's largest listed owner/developer of GP Centers (similar to medical office buildings) and Hospitals across the UK and Ireland. In June 2025, Primary Health Properties prevailed in the acquisition of Assura PLC, further strengthening its scale and market position. Shares advanced after the UK Competition and Markets Authority approved the merger with Assura Group on October 29, 2025, with no remedies required. |
| UTG.L | This thesis was ultimately borne out, as in mid-2025 ESP announced it had received a merger proposal from a larger rival, Unite Group (UTG), on terms that represented – in theory – a 10% premium based on ESP's and UTG's undisturbed share prices. However, shortly after the merger was announced, UTG and ESP's prices came under pressure, amid evidence of a slower student booking cycle and fears of what this might mean for future earnings growth. The fall was particularly pronounced in October when UTG confirmed that its occupancy levels for academic year 25/26 had undershot the company's targets. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
