INDUSTRIAL INVESTMENT

TYPES OF INDUSTRIAL INVESTMENTS ON OUR CURRENT PORTFOLIO

MANUFACTURING FACILITIES | FLEX SPACE | COLD STORAGE FACILITIES | DATA CENTERS | RESEARCH AND DEVELOPMENT (R&D) FACILITIES | WAREHOUSES AND DISTRIBUTION CENTERS

BENEFITS OF INDUSTRIAL INVESTMENT

1.STABLE CASH FLOW

INDUSTRIAL PROPERTIES TYPICALLY OFFER LONG-TERM LEASES, OFTEN BETWEEN 5 TO 20 YEARS, WITH TENANTS RESPONSIBLE FOR THE MAJORITY OF OPERATING EXPENSES (KNOWN AS “TRIPLE-NET” LEASES). THIS RESULTS IN MORE PREDICTABLE AND STABLE CASH FLOW COMPARED TO OTHER TYPES OF REAL ESTATE INVESTMENTS. FOR INVESTORS, THIS STABILITY IS HIGHLY ATTRACTIVE, ESPECIALLY IN COMPARISON TO MORE VOLATILE SECTORS LIKE RETAIL OR RESIDENTIAL.

2.ATTRACTIVE RETURNS

INDUSTRIAL PROPERTIES, ESPECIALLY WAREHOUSES AND DISTRIBUTION CENTERS, TEND TO OFFER RELATIVELY HIGH RENTAL YIELDS COMPARED TO OTHER ASSET CLASSES. THE STRONG DEMAND FOR LOGISTICS SPACE DRIVEN BY E-COMMERCE AND GLOBAL SUPPLY CHAINS CONTRIBUTES TO THE HIGH RETURNS ASSOCIATED WITH INDUSTRIAL REAL ESTATE INVESTMENTS.

3.CAPITAL APPRECIATION

IN ADDITION TO PROVIDING STEADY RENTAL INCOME, INDUSTRIAL PROPERTIES HAVE THE POTENTIAL FOR CAPITAL APPRECIATION. AS BUSINESSES GROW AND REQUIRE MORE SPACE, THE DEMAND FOR INDUSTRIAL REAL ESTATE INCREASES. IN PRIME LOCATIONS, WHERE DEMAND OUTSTRIPS SUPPLY, PROPERTY VALUES CAN APPRECIATE SIGNIFICANTLY OVER TIME.

4.E-COMMERCE GROWTH

THE RISE OF E-COMMERCE HAS FUNDAMENTALLY RESHAPED THE INDUSTRIAL REAL ESTATE MARKET. WITH MORE CONSUMERS SHOPPING ONLINE, BUSINESSES NEED MORE WAREHOUSES AND DISTRIBUTION CENTERS TO STORE AND SHIP GOODS. THIS TREND HAS ACCELERATED THE DEMAND FOR INDUSTRIAL PROPERTIES, ESPECIALLY IN LOGISTICS HUBS CLOSE TO MAJOR METROPOLITAN AREAS, CREATING A STRONG INVESTMENT OPPORTUNITY FOR THOSE IN THE SECTOR.

5.INFLATION HEDGE

INDUSTRIAL PROPERTIES ARE OFTEN SEEN AS A GOOD HEDGE AGAINST INFLATION. AS PRICES RISE, SO DO RENT PRICES, PARTICULARLY IN INDUSTRIES LIKE LOGISTICS WHERE DEMAND FOR SPACE REMAINS HIGH. ADDITIONALLY, LONG-TERM LEASE AGREEMENTS ALLOW INVESTORS TO LOCK IN RENTAL INCOME INCREASES IN LINE WITH INFLATION, WHICH CAN PROTECT THE INVESTMENT FROM ERODING PURCHASING POWER OVER TIME.