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Marketing Communication SSGA Real Estate — Europe WindWise Property Fund May 2022 For institutional/professional investors use only. This material is solely for the use of SSGA Clients and Prospects and is not intended for public dissemination. Information Classification: Limited Access 4749454.1.1.EMEA.RTL 1
Table of Contents
Market Update
WindWise Property Fund
• Overview
• Performance
• Holdings Update
Appendix:
A) Important Disclosures
All the information contained in this presentation is as of date indicated unless otherwise noted.
4749454.1.1.EMEA.RTL 2
Market Update
4749454.1.1.EMEA.RTL 3
Irish Property Market Update
Investment Market:
The Irish investment property market recorded over €5B of transactions in 2021, compared with c. €3.6B in
2020. The final quarter of the year proved to be the busiest with almost €2B of assets transacted. Turnover
figures were boosted in the fourth quarter by some large office sales including the sale of the former AIB
headquarters in Ballsbridge Dublin 4, which is now leased to Facebook, for a price of c. €395m. As with Q4,
turnover figures in the first quarter of 2022 (at €761m - JLL) were inflated by two large commercial asset
sales, being the sale of the Point Square mixed use office and retail scheme in Dublin 1 for c €85m and the
forward sale of a large (595,000 sq.ft) distribution warehouse in Kildare which, on completion will be leased
to Primark under a new 20 year lease. International investors Union acquired the Primark distribution
facility for a price of c €128m, which on completion will deliver a yield of c 3.6%. These transactions
underscore the depth of interest being reported by investment agents, from international investors. Despite
the uncertainty and volatility which has marked the early months of the year, investor sentiment remains
positive with strong transaction volumes, perhaps in recognition of its attractive income yield and defensive
characteristics.
Russia’s invasion of Ukraine in late February and the ongoing crisis have led to stringent sanctions and
significant social and economic uncertainty. While early effects, in terms of inflation in energy and
commodity prices are evident, the crisis does not appear to be impacting investor appetite for real estate in
core European markets.
Sources: JLL, Savills As of 31 March 2022 unless otherwise stated.
Past performance is not a guarantee of future results.
4661185.1.1.EMEA.RTL 4
Irish Property Market Update
Dublin Office Market:
Covid and the associated restrictions have adversely impacted office leasing activity in recent years, for
example CBRE estimate that the overall level of office take-up in Dublin in 2020 was down c 47% compared
with 2019.
2021 started as the previous year finished with the introduction of widespread restrictions on movement
which in turn adversely impacted leasing activity. A consistent theme, at that time, was that occupiers were
deferring decision making and negotiating short term extensions to existing leasing arrangements. As the
year progressed however activity levels started to pick up and it now appears that the Omicron variant had
very little impact on activity levels. For example the Dublin market saw a very strong finish to 2021, with
KPMG’s decision to take 290,000 sq ft of space at Harcourt Square the largest deal of the quarter and the
year, and suggests a confidence in offices by the professional services sector. The second largest deal was
TikTok’s decision to take The Sorting Office (216,000 sq.ft).
Q1 2022 also posted strong levels of take-up (a 944% increase over the level recorded in Q1 2021). The
largest letting of he quarter was to An Post at The Exo (78,900 sq.ft). While hybrid working arrangements
have become the workplace norm, occupiers are clearly still acquiring space and adapting offices towards a
place for collaboration.
Sources: JLL, Savills As of 31 March 2022 unless otherwise stated.
Past performance is not a guarantee of future results.
4661185.1.1.EMEA.RTL 5
Irish Property Market Update
Dublin Office Market (Continued):
While it may still be too early to properly gauge the impact that the pandemic, and the associated working
from home experience, will have in the long term it seems clear that the way we use offices will change in
the future. Changes to work, lifestyle and technology will alter how offices are designed and used post
pandemic. For the sector, in order to maintain its appeal to occupiers and investors, this is likely to mean
updating older office space to accommodate new modes of working and recognising the importance of
meeting both more stringent carbon emission standards and staff wellness requirements.
Anecdotally, we are seeing an increased focus on enhanced collaboration and breakout space in office fit
outs. Perhaps these trends, which combined with strong office take-up figures, recognise that while certain
work is best suited to quiet spaces and home working certain other tasks, such as problem solving, training,
team meetings and culture building are best done face to face. Encouragingly the IT sector (TMT), which is
important to the Dublin market, has dominated take-up in recent months accounting for 53% of take-up in
Q1, which is above the 10-year market average of 42%. The IT sector would have been well placed to
recognise the availability of remote working technology prior to the pandemic, the ease and functionality of
which surprised many in more traditional sectors during the past two years. Despite this the IT sector, more
than almost any other sector, have worked to bring staff together in campus style office developments
where collaboration, culture and staff loyalty is fostered. While this phenomenon is evident across markets
there are a few notable examples in Dublin such as Facebook in Ballsbridge, Google in Grand Canal Docks,
TikTok on the South Quays and Microsoft in Leopardstown.
Sources: JLL, Savills As of 31 March 2022 unless otherwise stated.
Past performance is not a guarantee of future results.
4661185.1.1.EMEA.RTL 6
Irish Property Market Update
Irish Retail Market:
Within real estate markets, aside from hospitality, the retail sector bore the brunt of the pandemic with rolling lockdowns
and trading restrictions. As with other countries, few investors were interested in Irish retail investment opportunities with
the result that yields softened in tandem with declining rental values (in response to severely muted demand from
occupiers). The combined effect of these dynamics saw a sharp decline in capital values for high street retail and shopping
centers, essential retail such as grocery, DIY and retail parks fared better. While retail Sector is likely to remain challenged
as customers increasingly embrace e-commerce which accelerated due to Covid19. Trend of recent years, where retailers
vacate weaker stores and focus on key stores in major cities, likely to continue, which will favor prime units.
According to JLL retail investment in Q1 2022 represented just 3% of the overall market for the quarter. Despite the slow
start to the year agents are reporting improved sentiment and optimism towards the sector with retail expected to take a
larger share of the market in the second half of the year. Having suffered two years of declining values shopping centres are
now emerging as an attractive investment opportunities (due to the higher yield profile available). Muted retailer demand
will however slow the recovery in rental values in the short to-medium term.
The performance of physical retail sales has been closely linked to the evolution of the Covid19 pandemic and containment
measures, such as mandated store closures of non-essential stores as well as the shift in retail spending towards online
channels, supermarkets and out-of-town retail locations. As the restrictions associated with the pandemic ease agents are
expecting the sector to see a slow recovery.
Sources: JLL, Savills As of 31 March 2022 unless otherwise stated.
Past performance is not a guarantee of future results.
4661185.1.1.EMEA.RTL 7
UK Property Market Update
Investment agents Savills, reported that Q1 2022 investment volumes were c 2.5% below the five year average but that the
deal count figure was c 42.1% below the five-year quarterly average. Savills ascribed the reduction in the number of
transactions to the impact of the Omicron variant and to reluctant sellers rather than to reduced buyer appetite, as data for
March points to improved activity. March also saw an increase in the number of sectors reporting downward yield pressure,
to nine including high street retail, shopping centres and retail parks together with south east offices and logistics.
The positive investment trends witnessed in the early months of 2022 reflect a continuation of a trend which was evident in
the latter half of 2021 with yield compression being reported across the main sectors of the market. CBRE reported at the
end of April that capital values had increased on average by c 5.2% since the start of the year. Yields for prime West End
offices have fallen from c 3.5% to 3.25% over the year to end March 2022, with a similar trend noted in the London City office
market where yields have contracted from 4% to c 3.75% over the same 12 month period.
Intense competition for industrial and logistics opportunities continues to drive yields down in this sector. Prime yields for
logistics investments now stand at c 3.25%, down from c 4.0% 12 months earlier.
Having suffered two years of declining values, on the back of weak occupational markets and limited investor appetite for the
sector, the retail sector now appears to be turning a corner in response to improved investor appetite, increased footfall and
renewed occupier demand. While the appetite for prime high street retail investments was very muted throughout 2021
yields contracted by c 0.25% over the course of Q1 2022 to stand at 6.25%. Prime retail warehouse opportunities saw an
earlier recovery with yield compression delivered each quarter of last year. Yields for prime opportunities in the sector now
stand at c 4.75%, down from 6.75% 12 months ago.
Sources: Savills, CBRE
Data as of 31 March 2022
4749454.1.1.EMEA.RTL 8
Windwise Property Fund
4749454.1.1.EMEA.RTL 9
WindWise Property Fund
DIVERSIFICATION STRENGTH OF TEAM TRACK RECORD
• SECTOR 40 Years 7.5% annual return
SSGA Has Been Managing Property Since 1981 Net of fees over 10 years
• GEOGRAPHY
20 Years Fund size €292m
• TENANT Current Irish Team Members have an Average
of 20 Years Industry Experience
Source: SSGA
Fund Size and all other data as of 31 March 2022
The performance figures contained herein are provided on a net of fees basis and do reflect the deduction of advisory or other fees. The performance includes the reinvestment of dividends and other
corporate earnings and is calculated in EURO.. Figures shown are net of the investment management fee of 0.50%.
Inception date of the WindWise Property Fund was 31 December 1981.
Diversification does not ensure a profit or guarantee against loss. Past performance is not a reliable indicator of future performance. Performance returns for periods of less than one year are not
annualized.
4749454.1.1.EMEA.RTL 10Windwise Property Fund — Fund Overview
Geographic & Sectorial Breakdown 31 March 2022
Fund Characteristics and Statistics as at 31 March 2022 Cash (11.2%)
Qualifying Investor Alternative Investment Fund
Structure
(“QIAIF”)
UK Industrial Ireland Offices
Fund Size €292 Million 8.3% (3 Properties) 44.3% (7 Properties)
Standard Fee 50bp
UK Retail
Number of Properties 25 1.7% (2 Properties)
Income Yield 5.2% (1)
UK Offices/Mixed Use
Reversionary Yield 5.2% (2) 6.9% (2 Properties)
Vacancy Rate 6.2% (3)
Weighted Average Ireland Industrial
c. 5.5 years(4) 11.9% (6 Properties)
Unexpired Lease Term
Trustee State Street Custodial Services (Ireland) Limited
Ireland Retail
Fund Administrator State Street Fund Services (Ireland) Limited 15.7% (5 Properties)
Distributions 6 Monthly
Subscriptions Monthly
Performance Figures 3 Mths YTD (%) 1 Year 3 Years 5 Years 10 Years
Redemptions Quarterly
to 31 March 2022 (%) (%) (% p.a.) (% p.a.) (% p.a.)
100% of Capital Value of UK assets is hedged back to
Hedging WindWise Property
Euro
Fund 0.74 0.74 4.53 1.67 3.73 7.51
Explanation Notes:
1. Based on contracted rent divided by capital value of direct property holdings, excluding acquisition costs.
2. The Reversionary Yield is calculated by dividing the Estimated Rental value of the portfolio by the value of the portfolio grossed up by acquisition costs.
3. Based on rental value of unoccupied (or unleased) accommodation expressed as a percentage of rental value of entire portfolio.
4. Figure calculated to end of December 2021 and is calculated to earlier of lease-end or break.
Performance is calculated net of management fees. Past performance is not a reliable indicator of future performance. Performance returns for periods of less than one year are not annualized.
The performance figures contained herein are provided on a net of fees basis and do reflect the deduction of advisory or other fees. The performance includes the reinvestment of dividends and other
corporate earnings and is calculated in EURO.. Performance for the WindWise Property Fund is calculated based on the Offer Price. The Offer Price is the Subscription Price that would apply to a
subscription order received for the relevant Subscription Day if no other unit dealing was received on that Subscription Day. It is computed by adding a provision of estimated costs for purchasing
underlying investments such as solicitor fees, agent fees, stamp duty and any other applicable charges to the NAV per unit as at the relevant Valuation Point. As of 31st March 2022.
4749454.1.1.EMEA.RTL 11WindWise Property Fund — Strategy for New Acquisitions
Definition Core Value Added Opportunistic
• Stabilised Assets • Additional income • Site assembly
• Long term income opportunities for development
• High investment • Significant Lease • Speculative
grade lease Rollover development
• Prime Location • Physical Deficiencies • High degree of asset
• Strong covenant • Understated Assets enhancement
• Niche property sectors
Risk Profile Low Moderate High
Source: SSGA Ireland, as of 31 March 2022
4749454.1.1.EMEA.RTL 12WindWise Property Fund — Strategy for Delivering Performance
Real Estate Investment Strategy
Active Asset Asset Disposal
Asset Acquisition Management
Disposal of Assets
Sourcing Commercial Real Full Disposal Due
Estate Assets Oversee Leasing of Premises
Lease Dilapidations / Expiry Diligence
Acquisition of Assets
Full Acquisition Due Lease Re-gears
Diligence Repositioning of Assets
Refurbishment / Upgrade
Oversee Projects to Handover
Fund Performance
Source: SSGA Ireland, as of 31 March 2022
4749454.1.1.EMEA.RTL 13A Snaphsot of Assets Owned by the WindWise Property Fund
Source: SSGA Ireland, as of 31 March 2022
4749454.1.1.EMEA.RTL 14Transactions
2004 Citywest, Citywest Business Campus, Dublin 24
The asset comprises three warehouse units in a terrace with ancillary yard
and car parking. The buildings were constructed in the late 1990’s and were
jointly owned on a 50:50 basis with another institutional property
fund. Both funds agreed a strategy to sell the asset due to its age and very
strong market conditions in the warehouse/logistics this sector. The sale of
the building completed in March 2022.
Source: SSGA Ireland, as of 31 March 2022
4749454.1.1.EMEA.RTL 15Recent Asset Management Update
40 Molesworth Street, Dublin
• In July 2021 the former tenant of this high profile building (Jet Engineering Technology Ltd) assigned their lease to
international Solicitors DLA Piper, with a parent company guarantee.
Ferry House, Lower Mount Street, Dublin 2
• Having completed a comprehensive refurbishment of a ground floor office suite in Ferry House, the Fund secured
a new lease to Beyond Air at the end of Q3 2021.
Unit 25 Magna Drive, Citywest
• Over the course of the summer SSGA undertook a refurbishment of this logistics building which was vacated by
Leo Laboratories in June 2021. Having completed the refurbishment of the unit we successfully secured Saint
Gobain, a pharmaceutical company under a new lease.
21 Fonthill Industrial Park , Dublin 22
• In April 2021 the former tenant of this high profile building logistics building (Aquilant Medical) assigned their lease
to Exertis Ireland Ltd, with a parent company guarantee.
1st Floor, Grafton Buildings, Dublin 2
• In July 2021 we successfully leased the entire 1st floor to Centric Health Care under a new 15-year lease (tenants
break option at year 10). This letting reduced vacancy and improved the weighted average lease length of the
fund.
Unit 1, Brundenell Drive, Brinklow, Milton Keynes, UK
• In January 2021 we extended the lease on the unit with Radley & Co. to February 2033 which provides over 11
years term certain. This is in a sector that is seeing strong occupier and investment demand.
Source: SSGA Ireland, as of 31 March 2022
4749454.1.1.EMEA.RTL 16Key Points to Takeaway
• Net Performance 1 Year +4.53%.
• Portfolio c. 94% leased up
• The WindWise Property Fund has No Gearing
• Diversification across 2 Countries
• The capital value of UK holdings is 100% hedged back to Euro
• The Fund’s exposure to the retail sector is c. 18%
Source: SSGA Ireland Figures, as of 31 March 2022. Past performance is not a reliable indicator of future performance. The performance figures contained herein are provided on a net of fees basis and
reflect the deduction of advisory or other fees. The performance includes the reinvestment of dividends and other corporate earnings and is calculated in EURO.
4749454.1.1.EMEA.RTL 17Appendix A:
Important Disclosures
4749454.1.1.EMEA.RTL 18Important Disclosures
Past performance may not be a reliable guide to future performance.
The WindWise Property Fund, previously known as State Street Global Advisors Property Unit Trust was authorised by the Central Bank of Ireland as unit trust pursuant to the Unit
Trusts Act, 1990 and the European Communities (Alternative Investment Fund Managers Directive) Regulations 2013 (as amended) as a Qualifying Investor Alternative Investment
Fund on 31 March 2015. This document should be read in conjunction with its Prospectus and Supplement. All transactions should be based on the latest available
Prospectus and Supplement which contain more information regarding the charges, expenses and risks involved in your investment. Prospective investors may obtain
these reports free of charge from State Street Global Advisors Europe Limited which is regulated by the Central Bank of Ireland. Registered office address 78 Sir John
Rogerson’s Quay, Dublin 2. Registered number 49934.1. T: +353 (0)1 776 3000. Fax: +353 (0)1 776 3300. Web: ssga.com.
The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.
Investing involves risk including the risk of loss of principal.
The views expressed in this material are the views of the Real Estate team through the period ended 31 March 2022 and are subject to change based on market and other
conditions. This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future
performance and actual results or developments may differ materially from those projected.
This document may contain certain statements deemed to be forward-looking statements. All statements, other than historical facts, contained within this document that address
activities, events or developments that SSGA expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain
assumptions and analyses made by SSGA in light of its experience and perception of historical trends, current conditions, expected future developments and other factors it believes
are appropriate in the circumstances, many of which are detailed herein. Such statements are subject to a number of assumptions, risks, uncertainties, many of which are beyond
SSGA’s control. Please note that any such statements are not guarantees of any future performance and that actual results or developments may differ materially from those
projected in the forward-looking statements.
Actively managed funds do not seek to replicate the performance of a specified index.
The fund is actively managed and may underperform its benchmarks. An investment in the Fund is not appropriate for all investors and is not intended to be a complete
investment program. Investing in the Fund involves risks, including the risk that investors may receive little or no return on the investment or that investors may lose part or even
all of the investment.
Diversification does not ensure a profit or guarantee against loss.
Investing in foreign domiciled securities may involve risk of capital loss from unfavourable fluctuation in currency values, withholding taxes, from differences in generally accepted
accounting principles or from economic or political instability in other nations.
4749454.1.1.EMEA.RTL 19Important Disclosures
The value of any Properties acquired may rise or fall and may do so at different rates. The property market is cyclical and a loss could be incurred if any Property was to be sold
during a downturn. Property is an illiquid asset class and delays could occur in realising the sale of any Property. The Net Asset Value of a Fund may fluctuate as property values
and rental incomes rise and fall. Whilst returns from Property investments have the potential for attractive returns over the longer term, the short-term volatility of these returns can
also be high. Property is a physical asset and as such is subject to obsolescence and environmental risks, such as earthquakes, pollution, flooding etc. which will impact on value.
Concentrated investments in a particular sector or industry tend to be more volatile than the overall market and increases risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund’s shares to decrease.
The funds presented herein have different investment objectives, costs and expenses. Each fund is managed by a different investment firm, and the performance of each fund will
necessarily depend on the ability of their respective managers to select portfolio investments. These differences, among others, may result in significant disparity in the funds'
portfolio assets and performance. For further information on the funds, please review their respective prospectuses.
Investing in REITs involves certain distinct risks in addition to those risks associated with investing in the real estate industry in general. Equity REITs may be affected by
changes in the value of the underlying property owned by the REITs, while mortgage REITs may be affected by the quality of credit extended. REITs are subject to heavy cash
flow dependency, default by borrowers and self-liquidation. REITs, especially mortgage REITs, are also subject to interest rate risk (i.e., as interest rates rise, the value of the REIT
may decline).
Asset Allocation is a method of diversification which positions assets among major investment categories. Asset Allocation may be used in an effort to manage risk and enhance
returns. It does not, however, guarantee a profit or protect against loss.
There are risks associated with investing in Real Assets and the Real Assets sector, including real estate, precious metals and natural resources. Investments can be significantly
affected by events relating to these industries.
Currency Hedging involves taking offsetting positions intended to substantially offset currency losses on the hedged instrument. If the hedging position behaves differently than
expected, the volatility of the strategy as a whole may increase and even exceed the volatility of the asset being hedged. There can be no assurance that the Fund’s hedging
strategies will be effective.
The trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or representations of any kind
relating to the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to the use of such data.
4749454.1.1.EMEA.RTL 20Important Disclosures
The information contained in this communication is not a research recommendation or ‘investment research’ and is classified as a ‘Marketing Communication’
in accordance with the Markets in Financial Instruments Directive (2014/65/EU) or applicable Swiss regulation. This means that this marketing communication (a) has not
been prepared in accordance with legal requirements designed to promote the independence of investment research (b) is not subject to any prohibition on dealing ahead
of the dissemination of investment research.
The information provided does not constitute investment advice as such term is defined under the Markets in Financial Instruments Directive (2014/65/EU) or applicable swiss
regulator and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell any investment. It does not take into account any investor's or potential
investor’s particular investment objectives, strategies, tax status, risk appetite or investment horizon. If you require investment advice you should consult your tax and financial or other
professional advisor.
All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or
warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.
This communication is directed at professional clients (this includes eligible counterparties as defined by the Central Bank of Ireland (CBI)) who are deemed both knowledgeable and
experienced in matters relating to investments. The products and services to which this communication relates are only available to such persons and persons of any other
description (including retail clients) should not rely on this communication.
Ireland: State Street Global Advisors Europe Limited is regulated by the Central Bank of Ireland. Registered office address 78 Sir John Rogerson’s Quay, Dublin 2. Registered
Number: 49934. T: +353 (0)1 776 3000. F: +353 (0)1 776 3300.
Web: www.ssga.com
© 2022 State Street Corporation — All Rights Reserved
Tracking Number: 4749454.1.1.EMEA.RTL
Expiration Date: 31 August 2022
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