Westwood Real Estate Investment Trust (REIT)
The Westwood REIT portfolio invests in approximately 50 publicly traded Real Estate Investment Trusts (REITs) and real estate-oriented companies. The portfolio remains fully invested (95% to 100%) at all times. Sector weightings generally approximate those of the NAREIT Equity Index. Value is added through individual security selection where each stock weighting can vary.
Buy discipline
Westwood conducts extensive proprietary research on each company that passes our initial screening criteria. Final decisions to buy or sell securities are driven by our in-house investment team’s recommendations. Criteria for securities considered for purchase include:
- Assets in regions with favorable demographic trends
- Assets in sectors with attractive long-term fundamentals
- Strong management team
- Strong balance sheet
- Attractive valuation (discount to our forward growth rate estimate)
Sell discipline
REITS are considered for potential sale when the following situations occur:
- Real estate supply/demand fundamentals become unfavorable in the company’s sector or region
- There is a perceived slowdown in internal or external growth opportunities
- The company is at risk of losing its competitive edge or is serving markets experiencing a slowdown in growth
- The price of the REIT become excessive relative to its NAV
More information
Please contact us to learn more about this and other Westwood portfolios or to set up a meeting with a member of our team.