CenterSquare employs a disciplined investment approach using proprietary research and analytics to seek attractive risk-adjusted performance across multiple market cycles. Investing in listed real estate, private equity real estate, and private real estate debt, our teams execute proprietary research and underwriting methods to seek mispriced investment opportunities. Our experience has shown that attractive relative valuations provide both downside protection and potential for upside growth. We are relentless in our pursuit of value and through proprietary risk management, we are consistent in our execution.
OUR STORY
Our Philosophy
Socially Responsible Investment Philosophy
Introduction
As a fiduciary, CenterSquare’s investment strategy is aligned with our clients’ long-term investment objectives and a commitment to social responsibility and environmental stewardship. CenterSquare’s socially responsible investing stance has been developed based on our duty to make purposeful and well-informed decisions on our clients’ behalf. CenterSquare has long recognized the basic tenets of socially responsible investments and the corresponding impact on investment portfolio performance. As real asset investment specialists, the analysis of environmental, social, and governance (ESG) factors is integrated into our investment process because we recognize their ability to create long-term and sustainable value.
Our Approach
Integration
CenterSquare incorporates a proprietary analysis of ESG factors while evaluating investments. As appropriate, CenterSquare favors investments with superior ESG metrics.
Listed Equities
We have been incorporating ESG considerations into our listed equities investment process for over two decades. As the focus on ESG has continued to evolve, we continue to incorporate additional best practices to make our model more robust. We assess companies along ten metrics that measure environmental stewardship, social responsibility, and corporate governance to provide an expanded analysis of material ESG factors.
Direct Property Investments
We incorporate ESG considerations into our direct real estate equity and debt investment processes. We conduct thorough environmental due diligence on all new investment activities and assess climate-related physical risks as part of our investment process. Separately, we conduct background checks on all parties with significant ownership or control of partners and employ a Responsible Contractor Policy designed to encourage social responsibility in the selection of independent contractors for real estate property investments.
Engagement
CenterSquare exercises its responsibilities as a direct shareholder in listed equities through engagement with companies based on this Philosophy via proxy voting and direct communication (meetings, letters, etc.) with other investors, industry bodies, non-governmental organizations, academics, or other specialists who can provide valuable insight into an ESG issue or a company’s activities. When appropriate and deemed necessary, CenterSquare may choose to lead or join with others in a campaign to promote our principles and values as stewards of client capital.
Collaborations
As part of our commitment toward social responsibility and environmental stewardship, we support the Task Force for Climate Related Financial Disclosures (TCFD) and are an active member of Climate Action 100+ and signatory to the UN Principles of Responsible Investment (UNPRI).
Socially Responsible Investment Collaborations
Voting
As a fiduciary and proponent of responsible investing, we believe it is important that investors participate in all company meetings through the exercise of their voting rights. As an active manager, we support or enhance our investment rationale for a company through active engagement and through the exercise of our clients’ voting rights globally as outlined in our Proxy Voting Policy steered by the ISS Sustainability Proxy Voting Guidelines.
Proxy Voting Policy
Transparency
We provide a quarterly responsible investment update to clients upon request, which can include examples of ESG engagements and records all voting activity undertaken during the quarter, including rationale for decisions to vote against management. Separately, as a UNPRI Signatory, we report on our responsible investment practices on an annual basis through the UNPRI reporting process, which aligns with TCFD recommendations. We also publish periodic research and notes that offer insight and thought leadership on topical and relevant ESG issues.
Code of Ethics Statement
The Social Spotlight: An Emerging Focus in Real Estate ESG
ESG: Making a Difference (And Money) with Real Assets
ESG and REIT Investment Strategies
CenterSquare speaks to NAREIT about the benefits of ESG considerations in a REIT portfolio.