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Strategy

Investment Objective

To increase the value of its shares in the long term through both growth in the value of, and income from, its investments. The fund invests mainly in a diversified portfolio of securities issued by real-estate related companies. The companies may be anywhere in the world, including emerging markets.

Investment Approach

  • Employ fundamental research with a bottom-up approach.
  • Assess the capability, strategy, and management of the business.
  • Evaluate the asset base potential.
  • Understand the supply and demand dynamics by property and market.
  • Analyze balance sheet strength and flexibility.
  • Integrate a risk-adjusted perspective throughout our analysis.
  • Establish whether we would want to own a business for the long term.
  • Leverage the deep knowledge base at T. Rowe Price, including dedicated analysts in North America, Europe, and Asia.
  • Real estate is affected by general economic conditions. When growth is slowing, demand for property decreases and prices may decline. Since the fund can invest substantially in foreign securities, it will also be subject to the risks inherent in non-U.S. issues.

Past performance is not a reliable indicator of future performance.

Annualised Performance

Current Year Performance

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30-Jun-2025 - Jai Kapadia, Portfolio Manager

Global real estate stocks delivered mostly positive results in June. Within the portfolio, unfavourable stock selection in US companies hurt relative results and our meaningful overweight to a US data centre company was especially detrimental. Shares plunged during the company’s “Analyst Day” as the company projected revenue growth that fell short of expectations while also announcing larger-than-expected investments to build up Artificial Intelligence (AI) infrastructure to support the coming AI boom. Stock picks in the UK also hindered returns. Our position in a large real estate manager and developer declined marginally on little new developments, but notably underperformed the broader UK real estate market. Conversely, our overweight allocation to Finland aided relative performance, as Finland was one of the stronger performing regions within the benchmark. Stock picking in Canada also contributed to relative results. Here, our position in a commercial real estate company rose on merger and acquisition news that investors viewed as favourable.

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GIPS® Information

T. Rowe Price (“TRP”) claims compliance with the Global Investment Performance Standards (GIPS®).

A complete list and description of the Firm's composites and/or a presentation that adheres to the GIPS® standards are available upon request. Additional information regarding the firm's policies and procedures for calculating and reporting performance results is available upon request

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