M
ichael Warren US Real Estate Managed Account Performance - USD (%) (as of 06/30/24)

    Cumulative Annualized Returns

    2Q24 YTD 1 Yr 3 Yr 5 Yr 10 Yr Since Inception (09/01/15)

    Composite (pure gross*) -0.53 -1.77 1.40 -1.66 4.93

    Composite (net) -1.26 -3.22 -1.56 -4.54 1.88

    FTSE Nareit Equity REITs Index 0.06 -0.13 7.79 0.30 2.81

    Past performance cannot guarantee future results. Investing involves risk, including the possible loss of principal and fluctuation of value.

    Investment environment

    U.S. equities achieved record highs during the second quarter, driven by a boom in technology stocks and robust corporate results. U.S. real estate investment trusts (REITs) were initially impacted by scaled-back interest rate cut expectations but recovered as inflation data eased. Sector performance diverged, with lodging, industrial, and office underperforming, while apartments and healthcare posted solid results.

    Portfolio review

    The top contributors to relative performance included positions in multi-family REIT UDR, healthcare REITs Sabra (SBRA) and Welltower (WELL). Conversely, Mexican industrial property company Vesta detracted from performance following the surprise election results. We added exposure to the industrial sector after a heavy sell-off in April and introduced new positions in a Sun Belt landlord and a U.S. mall owner.

    Manager outlook

    Increased confidence that interest rates have peaked is likely to benefit the listed property sector, which continues to trade at a discount to private market values. Public REITs offer reliable income streams supported by strong balance sheets and astute management teams.

    Representative Portfolio Top Holdings (%)

    Acct Equinix (EQIX) 10.01 Welltower 7.69 Public Storage 7.62 Prologis (PLD) 6.90 Sabra Health Care REIT 5.82 AvalonBay Communities (AVB) 5.08 CubeSmart (CUBE) 4.82 UDR 4.63 First Industrial Realty Trust (FR) 4.16 Equity LifeStyle Properties (ELS) 3.83 Total 60.57

    Please see the last page for important GIPS disclosures. The opinions are as of 06/30/24 and may not reflect the views of others in the organization. Janus Henderson may have a business relationship with certain entities discussed.