We believe that hard asset alternative investments provide diversification from the traditional asset classes available broadly to investors. Investments in the development or financing of development of hard assets that generate income based on long-term, secure contracts that have reasonable potential for increasing cash flow represent opportunities to participate in long-term value creation.
The chart below summarizes our consolidated net assets at December 31, 2016 by operating segment.
The chart below summarizes our consolidated net assets at December 31, 2016 by geographical allocation.
- Invest in Alternative Hard Assets. The Trust invests in hard assets such as real estate and infrastructure, including renewable power. This provides investors with an alternative to traditional investments in shares, bonds and cash by investing capital in assets that are not correlated to public equity or bond markets.
- Employ Flexible Structure. The Trust is not restricted by SIFT Legislation that applies to REITs and it is not required to comply with the regulations governing mortgage investment corporations. As a result, we seek to find opportunities in areas with limited competition to achieve higher risk-adjusted returns.
- Employ Experienced Asset Manager with a Strong Track Record. We benefit from Dream’s competitive advantage over many of its peers resulting from the scale and diversity of its operations.
- Increase Returns. We believe that there are opportunities to increase our returns by capitalizing on Dream’s expertise in managing real estate and alternative assets to generate stable and increasing returns.
- Diversify Risk Across Alternative Asset Classes. We diversify risk by spreading our investments among various types of assets, including real estate, real estate loans, and infrastructure, including renewable power.
- Efficient Tax Structure. The Trust is a taxable SIFT trust which requires the Trust to pay tax at the entity level. Renewable power and real estate assets generate tax depreciation often sufficient to shelter their income and, as a result, distributions may exceed taxable income, resulting in a portion of such distributions being treated as a return of capital for tax. Please see Tax Deferral on Distributions
- Reposition Portfolio. We continue to reposition the portfolio so that it is consistent with what we believe provides attractive risk-adjusted returns from a diversified portfolio of investments in hard asset investments, income properties, traditional real estate loans, development loans and equity and infrastructure, including renewable power.