SGH LaSalle Concentrated Global Property Fund update – September Quarter 2025

SGH LaSalle Concentrated Global Property Fund update: Ongoing opportunities on the horizon

In this SGH LaSalle fund update, Portfolio Manager Matt Sgrizzi recaps the September 2025 quarter. Matt outlines how global capital markets reacted to tariffs, and where he sees attractive values and opportunities in areas including cold storage, life science, cell towers, and even some office companies. 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 September Quarter 2025 SGH LaSalle Concentrated Global Property Fund update ⏬:

 

Transcript

SGH LaSalle Concentrated Global Property Fund – performance for the quarter

The global capital markets enjoyed some relative calm in the quarter as inflation and tariff fears faded and the US Central Bank, the Federal Reserve moved to an accommodative stance and cut their benchmark policy rate for the first time this year. G REITS and our fund were up modestly in the quarter, with our fund up 1.4% and 5.5% total return for the calendar year.

The portfolio only invests in the best 10 to 20 real estate opportunities we see globally. We see particularly attractive value in the UK and Canada today, which trade around all time low relative valuations compared to the US. Also today, we see extremely stretched valuations for growth companies, and alternatively, we see very attractive valuations in companies with less exciting growth profiles.

In fact, this relationship between growth and value looks just as stretched today as it did at the height of the 2000’s tech bubble. As such, we see great opportunities in real estate sectors that are having some near-term disruption, but have extremely valuable platforms that will deliver long-term value sectors like cold storage, life science, cell towers, and even some office companies.

That said, we also have some large positions in the data center and healthcare sectors, which are posting some of the best growth prospects among real estate companies globally. We sold out of a number of strong performing positions in the quarter and either reinvested in existing positions or added to new opportunities in the portfolio.

Key drivers of performance for the fund

A few of the places we took profits were in a Spanish REIT with data center exposure, a triple net lease REIT that went from the penalty box to a premium, and healthcare REIT that performs strongly after managing overblown tenant concerns.

Changes to position in the fund – shopping centres, single family housing and US REITS make a return

In their place, we invested in a US shopping centre REIT that’s been beaten up due to some exposure to some troubled tenants. But we think this is more of an opportunity as their centers are pretty much full and the REIT can likely release any vacated space at higher rents.

We also added to a single family housing rental REIT back to the portfolio. This was after exiting this sector a few years ago. It was once a really high flying sector, the single family housing sector, and the growth outlook is still good, but is downshift in recent years. That said, the chance to own housing way cheaper than it can be accumulated for unit by unit or built in the market today is very attractive. In making these changes we continue to move capital back into the US, where we have been significantly underweight, the US REIT market has underperformed sharply this year, a rare occurrence, and we’re moving back in.

Reasons to invest

First, REITs are under owned trade at undemanding valuation levels compared to equities. And not to mention that the real estate or REIT special attributes like attractive income, durable cash flows, falling supply levels, low leverage and strong operating platforms, which have been overlooked for years, could come back into heavy favor. Second, the outlook for real estate fundamentals is solid. This is underpinned by several dynamic real estate sectors that are enjoying strong pricing power, and limited or declining levels of competitive supply. REITs are also in very strong capital positions and poised to grow their market share compared to private investors.

Third, the track record for this fund has been very strong. Not only have we outperformed significantly with cumulative alpha of 40 percentage points, but we’ve done so with lower risk than the benchmark and proven our ability to outperform in up and down markets, even with a high conviction concentrated portfolio and over a fairly challenging period of time. And all of this is due to just an unrelenting focus to only invest in the best opportunities that we see in the global real estate markets. We expect to continue to prove that we can help investors navigate the global markets while retaining the many benefits of including liquid real estate in your portfolios.

*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/.