CEO UPDATE - MARCH 2026
As I reflect on the first quarter of 2026, looking out from my New York Apartment over Central Park blanketed with fresh snow, I remain more convinced than ever that hard assets with long-term income are more compelling in an increasingly uncertain world.
Despite lingering threats such as tariff uncertainties, volatile energy prices, and geopolitical tensions, the landscape is buoyed by unprecedented AI-driven investments, aggressive onshoring and reshoring of manufacturing, steady consumer spending, and projected GDP expansion in excess of 2.5%*. This level of growth in the world’s biggest economy is creating fertile ground for strategic real estate investment, which is creating a dislocation between the present and what is coming.
* GDP growth in Q3 2025 was 4.4%, and if you remove the lesser stake “government spending” has on this figure, private sector growth is accelerating more aggressively, and we are modelling for a 4%-5% GDP growth in 2026.
The U.S. economy is demonstrating remarkable momentum, and significant opportunity abounds.
We're especially watching the early impacts of the new Trump-era foreign investment initiatives, including over $5 trillion in "America First" pledges from trading partners that are already channelling capital into key sectors, enhancing reshoring trends, and bolstering demand for localized manufacturing and logistics spaces.
Complementing this, the One Big Beautiful Bill Act's accelerated depreciation provisions, restoring permanent 100% bonus expensing for qualified property acquired after January 19, 2025, along with expanded R&D expensing and business interest deductions, look set to deliver substantial incentives landing early this year, fuelling investment inflows, larger tax refunds, and accelerated development that position our portfolios for sustained, optimistic growth in the quarters ahead.
So overall, we are doubling down on our Industrial acquisition strategy and recommitted to acquiring 8 buildings in 12 months to capitalise on the current dislocation.
We have also set a strategy to reduce vacancy across our portfolio of Healthcare buildings and have already committed $1m to converting some older medical suites to attractive move-in ready beautiful spaces that attract the sort of doctors we really want in our buildings. As a minimum, we need to move back over the 95% leased level during the next 8 months, which will strengthen our exit position.
Better late than never, I wish you a prosperous year ahead.
