Quirijns asserted that companies outside the London office and residential markets should experience less turmoil in the short-term, post-Brexit and provide more opportunities for growth.
In the months before the referendum, Quirijns said he had reduced his allocations to companies in the London-based office and home builder markets to nearly zero, partially due to a perceived stagnation in rental growth.
Quirijns still maintains that position currently and revealed he has positioned his UK allocation to take advantage of the attractively valued UK companies hailing from logistics, self-storage, student housing and health care sectors.
These sectors are poised to deliver better income and growth prospects, said Quirijns.
“We believe the London office and residential markets will suffer the most from the decision on the referendum. The companies that we own outside of these markets—in the sectors noted above—should experience less turmoil,” he explained.
Given the unchanging air of political uncertainty hovering over the UK and EU, Quirijns, thinks that US REITs could provide attractive short-term buying opportunities.
Though, US REITS may suffer from short-term mispricings as a result of global risk and worries around Brexit and the actions of the US Fed, he believes this perception will change.
“Many U.S. REITs derive close to 100% of their revenues domestically, but their share prices could be affected by changing perceptions of global risk and worries about the effect on the U.S. economy, even if the Fed becomes more cautious,” he said.
“Against an uncertain global backdrop, REITs’ combination of increasing cash flow and above-average dividend yield may appear attractive relative to other sectors, in the U.S. and elsewhere,” he explained.
