Parfect told What Investment that his overall exposure to the UK property market has remained at around 5 or 6 per cent over the past year, but that there have been a number of stocks sold, and others bought within that time.
He has sold his shares in Tritax BigBox REIT, a property company that he had owned since it came to market. He commented that the investment case remains strong but the valuation is less attractive, so he has sold the shares. He continues to own some shares in London Metric Property, which has about half of its capital deployed in the same sort of warehouses as Tritax, but
On the wider outlook for property at a time of rising political uncertainty, Parfect commented that, ‘it is not a homogenous sector, there are some areas of property where there is a genuine, long term, shortage, such as logistics warehouses, and, in some secondary cities, of office space, and that doesn’t really change with the politics.’
The fund manager said, that he generally has a preference for niche property companies, rather than the giant, general real estate investment trusts.
The largest individual property investment in Parfect’s funds is a company he describes as ‘tiny’, AEW Property.
He told What Investment that, ‘this isn’t very niche in terms of the types of property in which it owns. But it is niche more in terms of the where it focuses. The trust concentrates on property below £10 million, and usually in the regions, rather than in London.’
Parfect concluded his comments with the remark that, ‘the company has a very high dividend, and a good management team. I think that combination is compelling for investors.’
The Seneca Diversified Income fund has a yield of just more than 5 per cent, and has returned 44 per cent over the past five years.