FidelityConnects: Real estate investing in 2026

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Hello, and welcome to Fidelity Connects.

 

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I'm Rory Poole. For the past few years artificial intelligence,

 

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or AI, has undoubtedly been the dominant conversation amongst

 

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investors globally. And while adoption and investment in this area may

 

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continue to dictate overall sentiment in the short term it's

 

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important that investors don't lose sight of some of the less loved pockets

 

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of the market. One area that certainly fits that description is

 

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real estate. As central banks globally continue to

 

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lower interest rates investors may find opportunities,

 

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attractive entry points and diversification in an asset class that is

 

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less sensitive to what's been dominating the recent news.

 

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Here to talk about real estate markets, where he's finding opportunities

 

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and a new strategy that combines both private and public real estate is

 

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portfolio manager, Don Newman.

 

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Before I introduce Don, just a reminder that today's webcasts

 

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will have live French interpretation.

 

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Don, with that, welcome. Thanks for being a breath of fresh air today.

 

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Yeah, thanks Rory, glad to be here.

 

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Okay, as I mentioned, let's start with talking about real estate markets at

 

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a higher level, I guess, and probably any discussion around fundamentals

 

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within real estate probably starts with painting a bit of a picture around

 

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supply and demand. What does that look like to you right now?

 

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Let's start with sort of a background and a little bit of

 

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a history lesson. If we go back a number of years, we

 

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go back to 2021, sector did

 

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fantastically well.

 

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REITs were up something like, at least in the U.S.

 

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the REIT index was up 40%.

 

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Perfect situation for real estate.

 

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We had demand which was actually pretty good and we

 

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had rates that were pinned at zero.

 

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People were really hunting for yield and valuation expanded on the sector.

 

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Now, while that was happening it set

 

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the stage for a couple of years that have been a little bit tough now.

 

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We know after 2021 we hit 2022 and 2023.

 

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Rates went from zero to 5%.

 

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Obviously, real estate is an interest rate sensitive sector and has to compete

 

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with other yield bearing assets.

 

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That put the sector under pressure for a couple of years.

 

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When you're in 2020, '21 when rates are pinned at zero it

 

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was really easy to get financing.

 

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A lot of construction projects started in 2000,

 

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sort of '21-ish, '22, '23 and have been coming

 

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on in 2024 and '25.

 

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We had a couple years where you had increased supply and you're

 

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battling through higher interest rates.

 

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Then, of course, we got the tariff shock at the start of the year.

 

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What's nice now is we're sitting on a sector where

 

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things really haven't moved in the last six years.

 

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The rest of the market has moved a lot.

 

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There's kind of a line of sight now to supply, interest rates

 

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are higher, the cost of producing any kind of building that you're making has

 

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gone up a ton. Supply is actually shrinking, interest

 

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rates look like they've kind of peaked down, or at least being cut and have

 

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certainly been cut a lot in Canada on the short end and the short end looks

 

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like they're coming down in the U.S.

 

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You now have a case of just broad brush where supply

 

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is moderating, demand is actually pretty good and interest

 

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rates are becoming a little more of a tailwind than a headwind now.

 

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It's an interesting time to actually start to look at the sector.

 

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That sounds like a pretty good setup, all things considered relative to, as you

 

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mentioned, a couple years ago.

 

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Looking forward, some optimism to be had in that sense.

 

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Now, what about the other piece? What about if we talk about valuation

 

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broadly speaking. Supply and demand is one

 

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thing in terms of, again, painting that fundamental picture

 

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but where's real estate kind of trading nowadays?

 

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Again, recognizing, and we'll talk about the fact that you can't paint it all

 

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with one brush but interested to hear your thoughts.

 

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We'll get into the fact that real estate's very heterogeneous.

 

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There's a whole bunch of different sectors we can look at, and we'll talk about

 

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that a little bit.

 

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From the broad brush valuation, you look at the entire market

 

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right now and we've had a number of years of really good runs.

 

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Valuations certainly are fair to a little bit on the expensive side.

 

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Real estate's different. As I said, because of the headwinds

 

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you've actually had, valuations, you can look at it almost across the board and

 

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a lot of the companies are actually trading at pretty steep discounts to NAVs,

 

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which we say net asset values. Just like other stocks, when

 

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fundamentals are not extremely robust what ends up happening is multiples

 

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compress. If you look at different sectors across, and I'll use U.S.

 

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multi-family as an example, the

 

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particular sector, because there's been headwinds are trading at multiples

 

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that you probably haven't seen ...

 

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or on the low side excluding the financial crisis and COVID,

 

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about the lower multiples you've seen in the last

 

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20 years. What's nice is if fundamentals do start to inflect

 

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sometime over the next year or two what you end up seeing is

 

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you get the chance for not only earnings to improve,

 

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which they should as supply and demand tightens up, but you also get the chance

 

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for multiples to expand.

 

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That's a really powerful sort of tool.

 

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You get a combination of you win on the earnings improving and you win on

 

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multiples expanding. It's a little bit different than probably where the rest

 

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of the market is right now.

 

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You mentioned, or you kind of hinted at the fact that

 

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real estate, you've used the term before, it's a very heterogeneous

 

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area of the market, if you will.

 

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Certainly I think in 2025 we've seen that divergence.

 

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We've got certain areas

 

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of the listed REIT market, whether it's health care, industrials

 

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in some instances, that are really led and then you have some of these areas

 

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that are still kind of shaking off that pandemic hangover,

 

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if you will, the offices of the world that maybe have trailed a little

 

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bit. Can you maybe just talk at large about what

 

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is the kind of opportunity set within real estate?

 

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Often we sort of get the questions, and living in Canada,

 

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as a Canadian you're very focused.

 

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Real estate means the Canadian housing market or the Canadian apartment market.

 

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There's a little extra supply, certainly, in condos right now and

 

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it's sort of a tough market.

 

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That is not broad brush the entire market, and certainly not the market

 

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I'm dealing with, which I find sort of fascinating.

 

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There's a whole bunch of subsectors in the real estate market for

 

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publicly traded REITs that don't share the same fundamentals

 

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They're all driven on a higher level a little bit by interest

 

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rates but supply and demand fundamentals are quite different between the

 

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different sectors. We'll sort of lift them off and I can go through them a

 

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little bit. You've got health care, you've got retail, you've got industrial,

 

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you've got multi-family, you've got single family, you've got data centre,

 

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you've got storage, you've got hotels.

 

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There are a large number of different subsectors

 

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that actually have very different characteristics.

 

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Right now, like, strength, health care,  the baby boom generation

 

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is getting to a point where ...

 

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I think the average person is now in their 70s.

 

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That is a huge age wave that is hitting a point where they need

 

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extra care.

 

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In some cases you have your parents go into

 

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some senior care or assisted living type things.

 

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What's interesting is during the pandemic no one would put their parents in

 

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there, you just wouldn't do it, so there was no supply, extra supply that was

 

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created. At the same time you could see this age wave coming and hitting

 

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and demand is exploding and there's no supply.

 

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Pricing power has been absolutely terrific on top of occupancy

 

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going up and the sector's been an absolute winner this year.

 

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Industrial has started to perform a little bit better.

 

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We've seen companies say, listen, we've got this tariff thing but

 

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at some point we actually gotta run our company, we've gotta make decisions

 

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again, and you're starting to see leasing

 

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kind of pick up. Companies, the whole idea of reshoring

 

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into the U.S. and companies need more distribution throughout

 

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the economy, those companies are talking about leasing

 

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picking up, occupancy picking up and things becoming

 

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stronger. At the same time there are sectors that

 

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have been impacted by supply, and the U.S. is a little bit ahead of Canada in

 

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terms of multi-family or what we think of apartments,

 

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huge amount of supply coming on in '24 and some in '25 but that

 

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supply has really started to dwindle now.

 

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You can kind of see, you got this line of sight into, well, in some cases

 

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you go to different regions and well, supply's down 60% this year, or

 

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new apartments brought to market

 

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look to be down another 35 next year.

 

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You can see the market's tightening up and the supply and demand, when

 

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it tightens up you'll get pricing power back and the companies are trading

 

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really cheaply.

 

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There's, I think, a lot of different opportunities that are outside of what

 

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people look at every day in the newspaper.

 

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Data centre, sort of really strong.

 

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The stocks haven't performed as well maybe as they should this year because

 

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they're having to put more CapEx in but that CapEx eventually turns into

 

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growth and cash flow, and that should work.

 

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A lot of opportunities out there, you just don't want to

 

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broad brush the whole sector when there's, in fact, multiple different sectors

 

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in there in the broad universe to look at.

 

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Correct me if I'm wrong but I think that there's upwards of 250 listed

 

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REITs in North America.

 

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Maybe I'm being a little optimistic about that but it's pretty big.

 

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No, no, no. It would be around 250. I probably look at and skim through 150 to

 

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200. It's not actually

 

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a small space. People just assume it's a couple REITs in Canada,

 

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a couple in the U.S. There is actually a very large constituency

 

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of real estate companies and public real estate companies to

 

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go through that all have different characteristics and potentially make

 

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for really interesting investments.

 

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I think the interesting thing for investors out there, if you look at the

 

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composition of the S&P 500 REITs are 2%

 

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or something like that.

 

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We'll get to more of this in terms of our conversation but if you want to make

 

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a kind of play towards diversification within

 

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a particular sector in addition to what you mentioned where there's so

 

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many different areas and pockets of the real estate market.

 

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Another thing, I'm just thinking of this now too, if I

 

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look at the composition of the REIT market I think a lot of investors

 

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would be surprised that it's not just all these dividend-paying,

 

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large-cap stocks. There's actually a lot of opportunities,

 

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let's call it down-cap or mid-cap, within that market which

 

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from an active management standpoint is probably appealing as

 

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a manager but also means there's potentially

 

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some inefficiencies.

 

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Well, a lot of things get overlooked.

 

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We're not talking about the $100 billion or $200 billion companies.

 

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We're talking about a few billion here and there.

 

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There are companies that are around and have been around for a long time.

 

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Fundamentals are actually good but they're probably overlooked.

 

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It's a nice combination of ... I run the Dividend fund here and it's a

 

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nice combination of yield plus growth.

 

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You can still get 4 or 5% yields, in some cases you've got 5% growth

 

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but in some cases, some of the health care guys are growing 10%, 15%, 20%.

 

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One of the examples I like to use is

 

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you look at retail. People think retail's sort of kind of a

 

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tough sector. Consumer's a little

 

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bit tough right now, maybe there's not as much to spend.

 

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But then you gotta go dig and look at supply.

 

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There's been almost no retail put onto the market in the last decade.

 

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If you talk to some of the CEOs, what they'll tell you is, well, we

 

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can't because if we wanted to actually build something at

 

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current interest rates and current costs we'd need 30 to 40% uplift

 

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in rents just to make this viable and to get a reasonable return.

 

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At the same time retail's fine but there's no supply.

 

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No supply means, oh, geez, all these companies people

 

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were worried about, e-commerce and that sort of moving

 

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away from retail, there's been almost no addition to actual physical

 

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retail, and at the same time e-commerce companies are realizing, wait a sec,

 

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we should actually have a physical presence here so people can come in and see

 

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the products.

 

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Multi-strategy has become much more prevalent than

 

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just online. People actually want to see the products, go into a store, and

 

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then also have distribution from that store where you can maybe return and

 

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actually get product.

 

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Especially like grocery anchor retail where people need food, we

 

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need to go to a grocery store and then they go to whole bunch of other needs

 

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based things. It's actually sort of an interesting area that kind of

 

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flies under the radar.

 

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That's changed so quickly.

 

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A couple years ago it was bricks and mortar's dead and now we're back to it,

 

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which probably just highlights the cyclicality that can exist within

 

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the real estate sector.

 

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Hello, investors. We'll be back to the show in just a moment.

 

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DialoguesFidelity podcasts available on Apple, Spotify, YouTube, or wherever

 

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else you get your podcasts. Now back to today's show.

 

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Let's talk about the new fund, Fidelity Alternative Real Estate Trust.

 

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This is a product that we launched for accredited investors in

 

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March of this year. You are the portfolio manager.

 

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It brings something a little different than I think some of your other mandates

 

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that you manage on behalf of Canadian investors.

 

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Why don't you talk a little bit about that and kind of your role as the PM.

 

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I serve kind of a dual role.

 

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One is kind of the asset allocator.

 

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What we tried to do is put together a fund

 

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where you've got kind of the best of both worlds.

 

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The baseline is going to be about 70% private to give

 

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people access to, and it's Canadian, so

 

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Brookfield. We've been lucky enough to partner up with the best in the business

 

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on the private side in Brookfield and we're buying private

 

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Canadian assets.

 

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On the public side, which is the

 

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area I run, we're gonna do about 30% in REITs.

 

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The idea there is sort of a combination of

 

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good risk-reward, sort of steady growth and income

 

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but also have a section of the fund that sort of has liquidity.

 

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I think under the baseline scenario you'll probably see 70/30 be about where

 

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the fund sits but I also do have the ability to flex it a little bit if

 

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one of the particular sides, the public or public,

 

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there's unusual opportunities

 

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and value there and we can shift more to the private or more to the

 

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public.

 

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Good stuff.

 

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I guess, Rory,

 

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for people out there, Rory's actually been on the product a lot longer than I

 

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have from product development standpoint.

 

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Maybe you spend a minute or two just talking about why Fidelity

 

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decided to sort of incubate this

 

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product and take us through the genesis of

 

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it.

 

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For sure, Don.

 

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Switch roles for a second.

 

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I think that where I'd start with that is just the fact that Fidelity

 

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is so great at managing many different asset

 

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classes that exist out there.

 

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You can see that by our line of funds, our offerings

 

17:27.913 --> 17:30.582

in Canada and really abroad.

 

17:30.582 --> 17:35.621

We don't do everything, however, we don't everything in-house, I should say.

 

17:35.621 --> 17:39.658

Private real estate or direct real estate investing, particularly within

 

17:39.658 --> 17:41.827

Canada, is one of those things.

 

17:41.827 --> 17:46.331

To your point, we saw some potential

 

17:46.331 --> 17:51.637

long term benefits of adding private real state as an asset class

 

17:51.637 --> 17:55.574

to our various capabilities that we have on our

 

17:55.574 --> 17:58.377

shelf here in Canada.

 

17:58.377 --> 18:02.181

Why is that the case? I think you mentioned a few of the attractive attributes

 

18:02.181 --> 18:06.718

of real estate generally speaking but in particular within private real estate

 

18:06.718 --> 18:11.623

lower volatility, has fairly

 

18:11.623 --> 18:15.594

predictable, I think, cash flow generation over time, can be a great

 

18:15.594 --> 18:21.266

diversification piece to other areas of investors' portfolios.

 

18:21.266 --> 18:25.838

What we really wanted to do was partner with Brookfield

 

18:25.838 --> 18:30.042

and kind of bring the biggest and the best, I would

 

18:30.042 --> 18:35.481

say, within the real estate space, particularly in Canada, that

 

18:35.481 --> 18:39.718

can leverage their entire platform to not just buy assets but actually

 

18:39.718 --> 18:43.922

operate those assets as well and have that

 

18:43.922 --> 18:47.993

at the ready for where we think it's of use within our

 

18:47.993 --> 18:52.030

broader lineup. There's a few different places where it already is

 

18:52.030 --> 18:56.068

of use and is becoming of more use, as is the case

 

18:56.068 --> 19:00.072

within your fund. We actually committed initially about

 

19:00.072 --> 19:03.909

a billion dollars' worth of capital for Brookfield to start investing on our

 

19:03.909 --> 19:06.845

behalf in various Canadian real estate assets.

 

19:06.845 --> 19:11.283

We've deployed about half of that thus far and we'll continue to do so.

 

19:11.283 --> 19:15.254

You can see evidence of this within some of the funds

 

19:15.254 --> 19:19.291

that David Wolf and David Tulk manage, in particular the private

 

19:19.291 --> 19:21.160

investment portfolios.

 

19:21.160 --> 19:25.230

We're also thinking of new ways and vehicles where investors can get more

 

19:25.230 --> 19:29.201

of a concentrated access to this capability, which is

 

19:29.201 --> 19:33.472

obviously the case within the Fidelity Alternative Real Estate Trust.

 

19:33.472 --> 19:37.209

I guess maybe just sticking on this kind of tangent we're on right now with

 

19:37.209 --> 19:41.346

respect to maybe Brookfield and Fidelity and this kind of strategic agreement

 

19:41.346 --> 19:45.317

we have, what do you think some of

 

19:45.317 --> 19:49.454

the benefits are of not only working with

 

19:49.454 --> 19:53.392

Brookfield but this product in particular to make it unique?

 

19:53.392 --> 19:55.127

That's a great question.

 

19:55.127 --> 19:59.164

I guess the first one is just, obviously, I talked a little bit about

 

19:59.164 --> 20:02.000

it, I think the timing is pretty good on this.

 

20:02.000 --> 20:04.136

You're not buying something at the top of the market.

 

20:04.136 --> 20:08.240

This is a brand-new fund, we're just starting this.

 

20:08.240 --> 20:12.244

It's a really good time to be Brookfield and

 

20:12.244 --> 20:16.281

going out and being the first call on assets that come to

 

20:16.281 --> 20:21.220

market. We went through a couple years of valuations compressing.

 

20:21.220 --> 20:25.190

Brookfield is seeing more opportunities out

 

20:25.190 --> 20:30.662

there at attractive prices to go and pick up assets that are good, whether

 

20:30.662 --> 20:32.497

it be logistics, multi-family.

 

20:32.497 --> 20:34.499

We bought some student housing.

 

20:34.499 --> 20:38.503

That should be really great assets for the next 10 to 20

 

20:38.503 --> 20:41.373

years. Timing is one.

 

20:41.373 --> 20:45.544

Number two, this is something for

 

20:45.544 --> 20:49.915

an investor or advisors that I think is really cool because

 

20:49.915 --> 20:53.952

you just can't do this at home Brookfield

 

20:53.952 --> 20:57.889

has just this global capability and

 

20:57.889 --> 21:01.927

the capability in Canada. They've been around and sort of dominating

 

21:01.927 --> 21:05.530

the Canadian real estate landscape for 50 years.

 

21:05.530 --> 21:09.434

If you're going to be selling an asset or doing a transaction in Canada

 

21:09.434 --> 21:13.171

Brookfield is your first call.

 

21:13.171 --> 21:17.309

They have the transacting capability, they have

 

21:17.309 --> 21:22.180

the cash, partially, for loss.

 

21:22.180 --> 21:27.052

Our investors, because we believe in the product,

 

21:27.052 --> 21:30.889

sourcing capability, financing capability but it's just also sort of like the

 

21:30.889 --> 21:36.928

on the ground. If you're a logistics facility and there's

 

21:36.928 --> 21:41.700

some vacancy there, they've got the global network to go and find and boost

 

21:41.700 --> 21:46.338

up that vacancy. Maybe we can find something that's

 

21:46.338 --> 21:50.976

not perfectly 100% leased but they can go out and already

 

21:50.976 --> 21:52.411

have people leased up.

 

21:52.411 --> 21:56.581

It's the ability to buy an operating

 

21:56.581 --> 22:01.586

platform and to do things, to go and buy a 500,000

 

22:01.586 --> 22:06.024

square foot industrial building, to go in and buy

 

22:06.024 --> 22:10.128

800 units of apartments that, hopefully,

 

22:10.128 --> 22:14.466

now valuations are a little more attractive and

 

22:14.466 --> 22:18.503

to be able to run that, fix up the roofs

 

22:18.503 --> 22:22.708

and do all the operating things that you can't do on your own

 

22:22.708 --> 22:26.144

in a single product.

 

22:26.144 --> 22:30.415

First call in real estate, best platform, they run the operating platform for

 

22:30.415 --> 22:34.653

you, and then on top of that

 

22:34.653 --> 22:38.623

we put the Fidelity turn over more rocks, do more work, the

 

22:38.623 --> 22:43.328

equity research capabilities that most people will know us for

 

22:43.328 --> 22:45.497

in Canada and around the world on the public side.

 

22:45.497 --> 22:49.568

It's a wonderful marriage of the two

 

22:49.568 --> 22:53.572

and you, hopefully, get a decent return at lower volatility

 

22:53.572 --> 22:57.376

than the overall Market.

 

22:57.376 --> 22:59.978

Putting together I think it's served ...

 

22:59.978 --> 23:04.182

good timing, product you can't do for yourself

 

23:04.182 --> 23:08.153

and a really good combination of income and growth over time.

 

23:08.153 --> 23:12.457

That's a great summary. I think just adding on to the point that you had

 

23:12.457 --> 23:16.361

with respect to why Brookfield.

 

23:16.361 --> 23:20.432

The question that you even had for me was simply it's

 

23:20.432 --> 23:25.804

developing a private real estate business and one that is kind of

 

23:25.804 --> 23:30.375

best in class, if you will, and developing scale within that area, that's

 

23:30.375 --> 23:31.109

tough.

 

23:31.109 --> 23:31.510

It takes decades.

 

23:31.510 --> 23:33.712

That involves a lot of investment time.

 

23:33.712 --> 23:37.883

As a result of that

 

23:37.883 --> 23:41.953

I think for our purposes within this product the stars kind of

 

23:41.953 --> 23:47.225

aligned to utilize a great partner like Brookfield.

 

23:47.225 --> 23:51.430

You talked a lot about the private portion of the new fund here, I actually

 

23:51.430 --> 23:56.268

wanna quickly just ask you more so about the sleeve that you run in

 

23:56.268 --> 23:58.236

listed REITs.

 

23:58.236 --> 24:02.407

You have an investment universe, broadly speaking

 

24:02.407 --> 24:07.546

it's like a cap-weighted North American REIT kind of index.

 

24:07.546 --> 24:10.449

Maybe our viewers would be curious to know a little bit, given the fact that

 

24:10.449 --> 24:14.586

you can purchase those REITs in Canada or the U.S.,

 

24:14.586 --> 24:18.290

maybe a two-part question.

 

24:18.290 --> 24:22.894

One is, are there specific differences

 

24:22.894 --> 24:26.898

between REITS that are north of the border versus those that are

 

24:26.898 --> 24:28.600

south of the border?

 

24:28.600 --> 24:32.671

Two, if we get there, is

 

24:32.671 --> 24:36.741

how do you look at a REIT differently than you would look at a normal

 

24:36.741 --> 24:40.345

dividend paying stock. I say normal but you know what I mean.

 

24:40.345 --> 24:45.116

The answer is the business models are converging a little bit.

 

24:45.116 --> 24:48.487

Canada very much used to be an income market.

 

24:48.487 --> 24:51.823

That sort of view, I think, has changed.

 

24:51.823 --> 24:54.759

Certainly, as valuations have come down people don't like ...

 

24:54.759 --> 24:57.762

or management teams can't go to the equity markets because you're not going to

 

24:57.762 --> 25:01.733

raise money at a 20% discount to NEV because it's just dilutive

 

25:01.733 --> 25:04.102

to shareholders.

 

25:04.102 --> 25:08.106

The U.S. market has been a little more of a growth

 

25:08.106 --> 25:12.043

plus income market. They run with lower

 

25:12.043 --> 25:17.182

payout ratios so you have cash left over to kind of reinvest, do acquisitions

 

25:17.182 --> 25:21.253

and run with more leverage. That seems to be the business model that has

 

25:21.253 --> 25:25.257

kind of won out. The Canadian firms are kind

 

25:25.257 --> 25:32.731

of more gravitating towards what

 

25:32.731 --> 25:34.432

the U.S. model looks like.

 

25:34.432 --> 25:36.201

I'm sorry, the second part?

 

25:36.201 --> 25:40.505

Just high level how you approach a REIT versus a [crosstalk].

 

25:40.505 --> 25:44.843

It's actually fairly similar. The metrics are all different, FFO,

 

25:44.843 --> 25:48.980

fund from operations, AFFO which is basically cash flow, subtract

 

25:48.980 --> 25:53.018

CapEx, you're looking at kind of like NOIs

 

25:53.018 --> 25:57.188

and cap rates. Anyway, there's a whole bunch of different lingo that goes into

 

25:57.188 --> 26:01.126

it. At the end of the day what I'm kind of doing is very similar to what I do

 

26:01.126 --> 26:04.229

in Dividend fund, because I've actually done it in Dividend and Dividend Plus

 

26:04.229 --> 26:08.233

for the last 20 years in the REIT portion, it's going and looking at

 

26:08.233 --> 26:10.835

a sub-sector of the market, finding sort of the sub-industry.

 

26:10.835 --> 26:14.973

Where are we finding the best supply

 

26:14.973 --> 26:17.175

and demand? Where are the fundamentals the best?

 

26:17.175 --> 26:19.711

What's gonna grow? What can grow cash flow the most?

 

26:19.711 --> 26:23.949

And then diving in and saying, okay, that sort of industry, or sub-industry,

 

26:23.949 --> 26:27.452

then going and looking at the company.

 

26:27.452 --> 26:29.287

What's the best company in the industry?

 

26:29.287 --> 26:32.223

Who's the management team?

 

26:32.223 --> 26:36.728

Who actually has the best assets that I wanna ride for a long

 

26:36.728 --> 26:38.930

period of time?

 

26:38.930 --> 26:43.001

It's industry, find the best company in it and then marry

 

26:43.001 --> 26:44.202

that with valuation.

 

26:44.202 --> 26:48.440

Okay, well, I found the best sub-section

 

26:48.440 --> 26:52.544

industry, I found the best company, can I buy it at a reasonable valuation?

 

26:52.544 --> 26:56.715

If I can put the three together and then I get a reasonable

 

26:56.715 --> 27:00.352

yield plus growth on it, and I always think of things as yield plus growth plus

 

27:00.352 --> 27:04.556

valuation, same as I would in Dividend, I just do it in the real estate world.

 

27:04.556 --> 27:08.627

We find a sort of an attractive opportunity and if they

 

27:08.627 --> 27:12.597

kind of meet the hurdle of good yield, good growth

 

27:12.597 --> 27:14.733

and reasonable valuation they go in the fund.

 

27:14.733 --> 27:18.670

Good stuff. Well, it sounds like with your overview of how you're seeing the

 

27:18.670 --> 27:22.674

market right now, that approach, and then, obviously, all

 

27:22.674 --> 27:26.645

the resources you have as it relates to this fund and otherwise, hopefully,

 

27:26.645 --> 27:30.582

should be a good next couple of years in that sense.

 

27:30.582 --> 27:34.519

Thanks, Rory. I'm excited, I'm excited about what sort

 

27:34.519 --> 27:36.655

of the prospects for the next couple of years.

 

27:36.655 --> 27:40.959

Yeah, we are too. And I guess just on that note, a bit of

 

27:40.959 --> 27:44.929

a service announcement, if you will, for those that are watching just in the

 

27:44.929 --> 27:48.900

sense that these offering memorandum accredited investor

 

27:48.900 --> 27:52.937

vehicles, as many, I think, advisors know, they take a

 

27:52.937 --> 27:56.808

little bit more time to get approved on various dealer shelves so I would

 

27:56.808 --> 28:00.745

encourage you that if you are interested in the Fidelity

 

28:00.745 --> 28:04.449

Alternative Real Estate Trust please talk to your Fidelity sales representative

 

28:04.449 --> 28:08.453

or anyone really who works in manager research at the

 

28:08.453 --> 28:12.590

dealer. We have many resources here at Fidelity that can help with

 

28:12.590 --> 28:16.561

that process but it's a little bit

 

28:16.561 --> 28:20.198

different than punching in the ticker like you would typically do on a mutual

 

28:20.198 --> 28:22.000

fund or an ETF.

 

28:22.000 --> 28:25.837

With that said, Don, thanks so much for joining us today.

 

28:25.837 --> 28:29.774

Thanks for watching or listening to the Fidelity Connects

 

28:29.774 --> 28:33.912

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We'll end today's show with a short disclaimer.

 

29:03.441 --> 29:07.278

The views and opinions expressed on this podcast are those of the participants,

 

29:07.278 --> 29:11.216

and do not necessarily reflect those of Fidelity Investments Canada ULC or

 

29:11.216 --> 29:15.220

its affiliates. This podcast is for informational purposes only, and should not

 

29:15.220 --> 29:17.756

be construed as investment, tax, or legal advice.

 

29:17.756 --> 29:20.058

It is not an offer to sell or buy.

 

29:20.058 --> 29:24.395

Or an endorsement, recommendation, or sponsorship of any entity or securities

 

29:24.395 --> 29:29.200

cited. Read a fund's prospectus before investing, funds are not guaranteed.

 

29:29.200 --> 29:32.771

Their values change frequently, and past performance may not be repeated.

 

29:32.771 --> 29:36.608

Fees, expenses, and commissions are all associated with fund investments.

 

29:36.608 --> 29:38.910

Thanks again. We'll see you next time.