Description Process Commentary
 
REIT
Investment Process

Purchase Discipline

Westwood conducts extensive proprietary research on each company which 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 (Price/Funds from Operation is at a discount to the 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.
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