Hoyt Investment Philosophy

The Hoyt REIT investment portfolio has been developed over a seven-year period. It has grown from a relatively small investment to a multi-million dollar portfolio, accounting for one-third of the Institute's endowment and one quarter of its net worth. Investment performance has been outstanding, as shown in Chart 1. This chart shows cumulative performance of the Hoyt portfolio as compared to the benchmark NAREIT Equity REIT Index and two prominent real estate mutual funds. Updated performance comparisons are available on request.

This portfolio was developed using a specific set of investment goals and criteria. Because of the nature of the endowment and the organization, the primary focus was on current income and value. As a long term investor, the Institute adopted a philosophy of investing in REITs that offered a current yield that would be acceptable over an extended period of time, regardless of stock market fluctuations. Other investment philosophies may influence risk and return and overall performance. While the Model was designed with a current income and value focus in mind, it is flexible enough to encompass a broad range of investment philosophies.

The investment decisions that resulted in this portfolio were made by senior Hoyt Group officers with substantial professional and academic real estate experience. In their decision making, they relied, in part, on Model outputs and analysis provided by the senior analyst. Their decisions reflect two investment goals, total return and diversification. Thus, the investment returns described above are the result of a combination of real estate and investment expertise and the Hoyt Model.