Resolution Capital is a specialist global real estate securities manager with a successful long-term investment track record and ardent culture of fiduciary responsibility. The firm was established in 2004 and is headquartered in Sydney, Australia and maintains an office in New York. We believe that listed real estate is an excellent means of gaining exposure to the underlying returns of some of the world’s highest quality real estate assets in a simple, transparent, liquid and tax efficient form.
We are a value orientated investment manager with the objective of delivering superior risk adjusted long term returns, compared with recognised industry benchmarks. This is achieved through investment in a concentrated portfolio of carefully selected listed real estate securities with an emphasis on avoiding fundamental flaws, which could reasonably result in permanent impairment of the underlying investments. This aligns our investment process and security selection with clients’ objectives of long term real wealth creation and avoids the culture of index hugging.
Resolution Capital invests in a select and diverse group of real estate platforms capable of generating superior risk adjusted returns for investors. We are intent on identifying and avoiding factors in our stock selection which could reasonably result in permanent capital impairment of the underlying investments. We believe that the ultimate driver of real estate securities is the quality and level of sustainable cash earnings generated by the underlying properties.
Primarily through bottom up research, Resolution Capital seeks to identify and invest in a select group of high quality stocks which afford unique characteristics that the market continues to under appreciate. The stringent filtering process focuses on identifying and exploiting three key attributes:
1. High barrier property markets where landlords have pricing power; and
2. Strong balance sheets which can successfully withstand and exploit market cycles; and
3. Management teams with skill, discipline and alignment.
To ensure focus on these attributes, the team adopts a concentrated approach that invests in no more than 60 stocks at any one time.
The bottom up analysis is reviewed in conjunction with the identification of ‘top down’, broader investment and direct real estate specific themes e.g. macro-economic conditions, demand and supply levels, construction costs etc, which may influence the risk level of the stock. Supporting the bottom up philosophy is the division of research responsibilities amongst the investment team by sector, rather than region. Our investment team members are specialists in their respective sectors, having travelled widely and been exposed to world best practices in the retail, office, residential, industrial, hotel, self storage and data centres sectors. They are uniquely equipped to evaluate companies and their management teams against global peers.
By adopting this philosophy, Resolution Capital believes it can create a portfolio which has the greatest prospect of delivering returns above inflation and consistent, sustainable, long term out-performance.
Resolution Capital is proud to present our Sustainability Report. In this report, we describe the ways in which we have integrated environmental, social and governance considerations into our business, culture and daily operations. We acknowledge sustainability is not a set and forget exercise, so further in the report we share the measures we are targeting through 2022.
Resolution Capital has a long history of taking a responsible approach to investing our clients’ funds placing paramount importance on protecting our clients’ interests. Resolution Capital has a Responsible Investment Policy, covering aspects of Environmental, Social and Governance issues relevant to its investment process. This should be read in conjunction with the Engagement Policy and Proxy Voting Policy.
Resolution Capital’s investment team is engaged in collecting data and assessing ESG considerations for use in our investment process. Within ESG we discuss governance considerations more frequently and these are often a key determinant in investment decisions. We take an active role in discussing governance standards with companies, including both those in which we invest, as well as ones where we have no current investment. We monitor the environmental efficiency of buildings, which impacts leaseability, rental rates and operating expense ratios, which are vital inputs into our investment decisions. In addition, we take into account social factors such as employee engagement, safety track record and diversity, given the critical role real estate plays in the broader community.
Resolution Capital is also a strong supporter of our local community, along with any other community that is in need.
Resolution Capital has been a signatory to the United Nations initiated Principles for Responsible Investment (www.unpri.org) since 2010. The Principles for Responsible Investment promotes the inclusion of ESG issues into investment analysis and decision-making processes.
We are pleased with our results for 2021 (report published September 2022) which are summarised as follows.
Resolution Capital achieved 4 stars across three assessed modules in 2021:.
To view Resolution Capital’s 2021 PRI Transparency Report, click here.
UNITED NATIONS GLOBAL COMPACT SIGNATORY
Resolution Capital is a signatory to the United Nations Global Compact; the world’s largest corporate sustainability initiative (www.unglobalcompact.org). We are proud to conduct business responsibly through alignment on universal principles on human rights, labour, environment and anti-corruption.
Our Communication on Progress (COP) is publicly available on the Global Compact website.
Resolution Capital acts in the best interest of clients as shareholders. It is the policy of Resolution Capital to vote on all proxy resolutions it has the ability to vote on. The table below shows the extent to which we have exercised our vote in recent times:
Resolution Capital is proud to be collaborating with the Pinnacle Charitable Foundation to partner with four inspiring Australian charities. As part of the company’s commitment to broad ESG principles, Resolution Capital has developed partnerships aimed at building the capacity and reach of these highly efficient and effective organisations, across two key focus areas.
Supporting children facing acute and/or systemic disadvantage.
Supporting highly specific medical research:
Our partnerships are reviewed annually to ensure that our donations are driving sustainable change. However, we aim to commit to supporting a charity for a minimum of 3 years to build capacity for the longer term.
Funding the research, development and implementation of clearly identified projects and programs aimed at improving long term outcomes for children and adults through tailored programs and research, is a core focus for Resolution Capital employees.
Donating our time through team based volunteering activities is also important to us and is undertaken annually across the company, including working with several environmental not for profit organisations.