The Benchmark Data & Infrastructure Real Estate SCTR℠ Index measures the performance of publicly-traded real estate securities, including Real Estate Investment Trusts (REITs), of exchange listed companies in the U.S. that primarily are engaged in real estate related businesses within the following business lines: (i) ) Data storage and information management services offering a range of products and services including record management, data management, document management, and data centers (ii) General Infrastructure & Outdoor Media including fiber cables, wireless infrastructure, telecommunications towers, diversified government solutions, outdoor media sites, and energy pipelines (iii) Timber & Farmland real estate specializing in harvesting agriculture, food, feed and selling timber.
Data center REITs and cell tower REITs are the backbone of technology real estate and power the internet of things from self-driving cars to online video, social networking and mobile data traffic driving intense demand.
Data and Infrastructure real estate serve as the foundation of online commerce, cloud computing, artificial intelligence, and construction of mission-critical communications infrastructure such as fiber optics, wireless towers and ground leases making the SCTR relatively insensitive to downswings in the economic cycle.
Competition has been limited, as building these facilities is capital and technology intensive; even major users have desired to “partner” with the developers and owners of these properties. Demand is driven by corporate users with increasing power and connectivity needs making for long lease terms, which provide for cash flow stability.
|NUMBER OF HOLDINGS:||23|
|WEIGHTING:||MODIFIED MARKET CAP|
TOP 10 HOLDINGS
Top 10 Holdings
As of 12-14-2018
Benchmark Real Estate SCTR℠ proprietary holdings and performance history are provided upon request. SCTR℠ indices are protected through various intellectual property rights and unfair competition and misappropriation laws. In particular, Benchmark Investments has registered the “SCTR” “SRVR” and “SCTRs” service marks. Benchmark requires a license to launch any product whose performance is linked to the value of a particular SCTR℠ index, for example, derivatives, bonds, swaps and OTC products and for all use of the SCTR℠ name or name of the SCTR℠ index in the marketing of the product. See the Terms of Service for more information.
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|Benchmark Data & Infrastructure Real Estate SCTR℠ Index||SRVRSCTR||Total Return||NASDAQ|
SRVR Returns: Not All Real Estate is Created Equal
SRVR℠ Returns vs. Benchmark SCTRs℠ and FTSE Nareit Indexes demonstrate how each property type has its own set of investment characteristics, including individual economic cycles and risk factors, competition threats, and growth potential. Real Estate SCTRs℠ provide tailored solutions for commercial real estate investment management. There is significant dispersion of market multiples (Share Prices/Fund From Operations) and returns throughout the property sectors. SCTRs℠ give market participants direct access to the property class they desire.
Benchmark SRVR 1YR Percentage Returns
Benchmark SRVR 3YR Percentage Returns
Advantages of Real Estate SCTRs
Correlation and risk-adjusted return metrics demonstrate that listed equity real estate investment trusts provide optimal exposure to the real estate asset class.
Allows investors to take or adjust positions quickly and efficiently by buying and selling positions corresponding to the weights of all constituents which are traded on liquid public markets such as NYSE & Nasdaq.
Provides direct access to institutional office real estate diversified over many geographic areas and management teams without investing in properties or with a real estate equity managers
Portfolio Investment Thesis
Real Estate SCTRs℠ provide tailored solutions for commercial real estate investment management. Main drivers for each real estate SCTR℠:
- Market “cap rates”
- Supply/ demand conditions
- Competition from nearby properties
- Employment growth
- Consumer and business spending
- Interest rates
- Lease revenues
- Property expenses
- Occupancy rates
- Prevailing market rental rates
- Tenant quality and replacement cost