LDR Capital Management invests in the publicly-listed preferred shares of REITs. Our investment objectives are capital preservation, providing a high quality, consistent income stream, and the generation of attractive risk adjusted returns.

APPROACH

imageLDR Capital Management primarily invests in publicly-listed preferred shares of REITs. The REIT preferred asset class has historically generated consistent, solid risk-adjusted returns to investors. Further, the REIT preferred asset class currently provides current yields akin to high yield debt but with minimal historic default rates closer to high grade debt.

 

LDR Capital Management’s investment team invests on a bottom-up basis, selecting what it believes to be the most attractive opportunities at a given time. As well, the team allocates capital from a top-down perspective across all publicly traded commercial real estate sectors based on prevailing and upcoming macroeconomic conditions.

 

From a bottom-up perspective, the LDR Capital Management investment team uses its fundamental REIT and real estate expertise to continuously analyze all issuers in the REIT preferred universe.  The team’s analysis addresses sector fundamentals, company balance sheet standing, lease economics, tenant operating results, management governance issues, and other pertinent items affecting the credit standing of an issuer.

 

Further, the LDR Capital Management investment team uses its preferred securities expertise to analyze and value each and every publicly traded issue in the REIT universe. To that end, the investment team analyzes the nuances and intricacies of all REIT preferred securities, including call dates, durations, coupon payments and any other pertinent characteristics.

 

From a top-down perspective, the LDR Capital Management investment team analyzes commercial real estate across all property sectors to forecast upcoming fundamentals and earnings trends. As well, the investment team considers macroeconomic influences such and trends in GDP growth, inflation rates and the level of interest rates to determine the appropriate allocations of capital among the REIT preferred universe.

 

LDR Capital Management’s investment team then builds its portfolios of between 75-85 securities in a manner that takes account of all the aforementioned influences. The resulting portfolio seeks to offer diversification across property sectors based on prevailing macroeconomic conditions, while at the same time, concentrated investments in issues that the LDR Capital investment team believes offers higher risk-adjusted returns to its clients.