Question 1

What are global property REITs?

Accepted Answer

Global property REITs are Real Estate Investment Trusts that own and operate property portfolios across multiple countries. Unlike traditional property REITs focused on offices or retail, many global REITs now specialise in digital infrastructure like communication towers and data centres. They must distribute most profits as dividends, providing income whilst offering liquid trading and professional management without direct property ownership hassles.

Question 2

What is digital infrastructure in property investing?

Accepted Answer

Digital infrastructure refers to the physical assets that power our connected world, including communication towers, data centres, and interconnection hubs. These properties house the servers, equipment, and networks that enable mobile communications, cloud computing, and internet services. Companies like American Tower and Digital Realty own these essential assets, generating rental income from telecommunications and technology companies.

Question 3

How do communication towers make money?

Accepted Answer

Communication towers generate revenue by leasing space to telecommunications companies who install their equipment to provide mobile coverage. Tower owners like American Tower collect substantial rents from multiple carriers using the same tower, with contracts often including annual rent increases. As mobile data usage grows and 5G networks require more towers, these assets become increasingly valuable with predictable income streams.

Question 4

Are global property REITs risky investments?

Accepted Answer

Global property REITs carry several risks including interest rate sensitivity, currency fluctuations, and regulatory changes. Rising bond yields can make REIT dividends less attractive, whilst foreign currency exposure introduces volatility. However, the essential nature of digital infrastructure provides stability, and quality assets like those owned by Digital Realty often have irreplaceable competitive positions with long-term tenant contracts.

Question 5

Why invest in property REITs vs buying property directly?

Accepted Answer

REITs offer liquidity, diversification, and professional management that direct property ownership cannot match. You can trade REIT shares instantly during market hours, gain exposure to global portfolios with minimal capital, and benefit from expert management. REITs also provide access to premium assets like Equinix's interconnection hubs that would be impossible for individual investors to acquire directly.

Question 6

Do global property REITs pay good dividends?

Accepted Answer

Global property REITs typically offer attractive dividend yields as they must distribute most profits to shareholders. Companies like American Tower and Digital Realty generate stable rental income from essential infrastructure, often with built-in rent escalations for inflation protection. However, dividend sustainability depends on the quality of underlying assets and tenant creditworthiness, making careful selection crucial.

Question 7

How do property REITs protect against currency risk?

Accepted Answer

Global property REITs provide natural currency diversification by generating revenues in multiple currencies, particularly US dollars from stable developed markets. This can protect against local currency volatility, though it works both ways - foreign currency exposure can add volatility when converted back. Many infrastructure REITs also include inflation escalation clauses in leases, helping preserve real returns over time.

Question 8

Why are data centres good property investments?

Accepted Answer

Data centres represent essential infrastructure for cloud computing, with growing demand from companies outsourcing their IT needs. Digital Realty's facilities serve major technology companies like Microsoft and Amazon, providing stable long-term rental income. Once established in prime locations, these interconnection hubs become difficult to replicate due to network effects, zoning restrictions, and the time required to build competitive positions.

Question 9

When is the best time to invest in global property REITs?

Accepted Answer

The digital infrastructure trend driving global property REITs shows no signs of slowing, with exponential data growth, 5G rollouts, and cloud computing adoption creating sustained demand. However, timing depends on interest rate environments and valuations. Rising rates can pressure REIT prices, whilst competition for prime assets has increased acquisition costs, potentially limiting future returns.

Question 10

What drives growth in global property REITs?

Accepted Answer

Key growth drivers include exponential global data consumption, 5G network deployment requiring more towers, and continued cloud computing adoption. Companies are increasingly outsourcing IT infrastructure to specialists like Digital Realty rather than maintaining their own servers. Geographic diversification also provides exposure to emerging markets with higher growth potential as digital infrastructure catches up to demand.

Question 11

Can I invest in global property REITs with small amounts on Nemo?

Accepted Answer

Yes, Nemo offers fractional shares of global property REITs starting from just £1, making world-class infrastructure assets accessible to all investors. The ADGM-regulated platform provides commission-free investing and AI-driven insights, allowing you to build exposure to companies like American Tower and Digital Realty without requiring substantial capital or property management expertise.

Global Property REITs: The Infrastructure Play That's Reshaping Real Estate Investment

Global Property REITs: The Infrastructure Play That's Reshaping Real Estate Investment

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Summary

Is Your Property Portfolio Stuck in the Analogue Age?

Forget Penthouses, Think Pylons

The Armchair Landlord's Dream

Building a Digital Fortress

A Reality Check on the Risks

Deep Dive

Market & Opportunity

Key Companies

Primary Risk Factors

Growth Catalysts

How to invest in this opportunity

Frequently Asked Questions

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