| Summary |
| The economy is progressing at a pace almost beyond belief. The fourth industrial revolution is in process of transforming our daily activities, the manufacturing sector, and the entire service industry. In fact, we have two distinctive eco-spheres: the digital world and our physical one. The blur is important with the result: one global economy built on the back of bytes and another composed of bricks and mortar. |
Warehouses and Datacenters
As the economy is changing, data centers (cloud capacities) are required. This shift has significant ramifications for the global economy across all industry segments. Some real estate companies will experience a higher growth rates than others.
| SEGRO | SEGRO is a leading owner and developer of urban warehousing and light industrial property. Its UK portfolio is concentrated in key warehousing locations, including the Slough Trading Estate, Park Royal, Heathrow and the Midlands. |
| Goodman Group | Goodman Group is a global real estate investment trust active in industrial and global warehousing real estate. |
| GLP J-REIT | In Japan, internet commerce is growing rapidly and the demand for up-to-date logistic facilities is increasing. GLP’s future dividend growth should be driven by higher rents and new facilities acquisitions from the parent company group. |
| Nippon Prologis REIT | The company’s advanced logistic REIT is benefiting from increasing demand for e-commerce. Nippon Prologis REIT has ample projects to acquire properties from its parent company group, which should lead to further dividend payments in the future. |
| A-REIT | AREIT operates in the business and science park, hi-tech industrial, light industrial, and logistics & distribution center segments. |
| Mapletree Logistics | Mapletree Logistics Trust’s income and distributions should remain relatively resilient. We expect its portfolio of logistics assets to benefit from structural growth in e-commerce. |
| Equinix | Equinix is the largest provider of colocation, interconnection, and other data center services to corporate customers in industries from financial services to cloud/IT and digital media. |
| Cisco Systems |
Cisco is a leading vendor of Internet Protocol (IP) based networking equipment for transporting data, voice, and video. Healthy growth in data-center products and security will likely sustain top-line growth over the longer term. |
| Intel Corp | Intel is the leading producer of microprocessor chips and platforms for client computing, data center, IIoT, memory solutions, security, and programmable solutions. |
| Amazon.com Inc | As a major disruptor across many traditional industries like retail, advertising and data centers, Amazon should continue to post above-average growth. |
| NVIDIA Corporation | NVIDIA is a leading GPU vendor and key beneficiary of rising data center spending, given the company’s significant first-mover advantage in AI training and inference market. |
| Softbank | Both directly and indirectly through its investments, Softbank has a strong data center presence and should benefit from the ongoing shift to cloud. |