SGH LaSalle Concentrated Global Property Fund update – March Quarter 2026

SGH LaSalle Concentrated Global Property Fund update: March Quarter 2026

In this SGH LaSalle fund update, Portfolio Manager Paul Meierdierck recaps the March 2026 quarter.  The SGH LaSalle Concentrated Global Property Fund holds 10–20 high-conviction global REITs, targeting durable cash flows, attractive yields, and strong downside protection.

 

Watch/Listen to the March quarter 2026 SGH LaSalle Concentrated Global Property Fund update ⏬:

 

Transcript

SGH LaSalle Concentrated Global Property Fund – performance for the quarter

The first quarter of 2026 can characterize by two distinct periods before and after operation Epic Fury, the conflict between the US and Iran. GREITS began the year with a strong start through February. However much of these gains were erased in March due to renewed geopolitical instability. GREITs in our fund ended the quarter essentially flat, finishing close to where we began the year.

Major markets were led by the US, demonstrating strength inherent and energy independence. While Australia and Europe lagged. Data centres exhibited the strongest performance among property sectors continuing to benefit from the AI boom, while economically sensitive property types, including office and residential trail.

Unlike other funds our program is not constrained by a benchmark and can therefore concentrate only on the best opportunities we identify globally and across property sectors. Thanks to our disciplined portfolio construction, we expect mid-teens annualized returns over the next three years, well above benchmark returns.

Key drivers of performance for the fund

We continue to see attractive value in the UK and Canada while the US presents a mixed bag of opportunities. Conversely, values in Japan appear, stretch, and have not adjusted sufficiently in the face of the dramatic rise in interest rates. Values in Australia look more compelling than a year ago, though they have yet to reach enticing levels. Among property sectors, we see compelling opportunities where market participants have misjudged the impacts of technological disintermediation.

Specifically in cell towers and office, while the hotly anticipated SpaceX IPO and Amazon’s deal by Global Star have ignited concerns that satellite connectivity will supplant terrestrial network infrastructure. We view this technology as complimentary rather than cannibalistic. Similarly, AI adoption among white collar employers has prompted questions about office real estate demand.

While uncertainty does exist, the idea that technological advancement will lead to aggregate workforce reduction would be unprecedented in human history. Accordingly, we believe deeply discounted office names that own high quality properties in premier markets such as London and New York appear compelling.

We continue to reduce the portfolios waiting in Japan, being cognizant of the size of that bet in relation to internal geographic risk limits. Seeking novel opportunities in Asia, we initiated a position in a shopping centre company listed in Singapore. Its defensive characteristics and high-quality portfolio position it well amid macro uncertainty. We harvested profits in a US shopping centre company as well as a small portion of our position in a data centre REIT following strong performance. We also identified incremental areas for capital deployment among existing holdings including cell towers, New York City office and US residential.

In many ways, we view this capital deployment as being balanced positioned both for economic reacceleration if and when macro clouds lift. And alternatively, for a risk off environment, we remain in the early stages of a broad market shift from growth into value. REIT valuations remain near extreme levels relative to broader equities.

Recent pressure on companies such as software developers from AI disintermediation highlights a change in investor preference toward enterprises with heavy assets and low obsolescence HALO characteristics inherent in real estate. Organic income growth for the sector has remained positive, we expect an inflection point later this year where growth in this rate or second derivative growth should turn higher for the first time in four years.

Private real estate values have continued to rise since reaching a low at the end of 2023. Thus, income and capital appreciation are moving in tandem. Finally, our carefully curated portfolio is the byproduct of a differentiated strategy and disciplined process. I previously mentioned our anticipated value creation, but our strong track record validates that our process works.

Reasons to invest

We have generated nearly 40 percentage points of cumulative alpha for investors in the strategy since inception. Importantly, we have achieved this with lower risk than the benchmark consistently outperforming in both rising and declining markets.

Thank you.

*The text has been edited for clarity.

For more information about the SGH LaSalle Concentrated Global Property Fund, click HERE. Follow us on LinkedIn.

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Disclaimer

This fund update has been prepared by SG Hiscock & Company (SGH) to provide general information only and is not intended to take the place of professional advice. It does not take into account the investment objectives, financial situation or particular needs of any particular person.

Equity Trustees is the responsible entity for the SGH LaSalle Concentrated Global Property Fund. Neither SGH, Equity Trustees nor any of its related parties provide any warranty of accuracy. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the Product Disclosure Statement before making a decision about whether to invest in this product. Follow the link for the full disclaimer: https://sghiscock.com.au/podcast-disclosures-and-disclaimers/.