TRADE ALERT - International Portfolio June 2026 (New Investment)
I recently attended REIT Week in New York City, which is one of the largest annual real estate conferences in the world.
The conference brings together the management teams of most major REITs, but it also attracts a lot of very sophisticated real estate investors, including people who look beyond just U.S. REITs.
One of these investors spent a lot of time talking to me about a company that I had not studied closely in a long time: VGP (VGP / VGPBF), a publicly listed European industrial real estate developer.
VGP is not technically a REIT. It is a developer, owner, and manager of industrial and logistics real estate across Europe. But it owns the type of assets that we like, it has a fantastic track record of value creation, and its valuation has now become unusually attractive.
After doing more work on it, I think the opportunity is compelling enough for us to initiate a position. This is not a low-risk REIT. It is a more volatile developer with more moving pieces.
But that is also why the opportunity exists.
VGP pays a 3% dividend yield, which gives us some income while we wait, but the real appeal is the company’s ability to create significant value over the coming decade through development, capital recycling, and potential data center conversions.
Today, VGP appears to be trading at a sizable discount relative to the fair value of its assets, and I think that the market is not giving enough credit to three major sources of value:
Its large land bank
Its data center optionality
Its future growth potential from e-commerce, reshoring, and defense-related industrial demand
