VT Gravis Digital Infrastructure Income sources three new opportunities

5 minute read

Matthew Norris

Director, Real Estate Securities

Digital infrastructure is central to the modern economy, and at the forefront of the fourth industrial revolution. However, despite the long-term tailwinds, high interest rates and inflation in recent months, have depressed sentiment in the sector.

Such has been the re-rating that, in a rare move, the usually very low-turnover VT Gravis Digital Infrastructure Income Fund, has made the most of the discounts available to add three new holdings to its portfolio.

Matthew Norris, investment adviser to the Fund, commented: “The Fund has initiated three new positions in the past few weeks, as new opportunities within the digital infrastructure sector appear.

“The first new position is in Digital Core REIT, a leading pure-play data centre Singapore-listed REIT, sponsored by Digital Realty, the largest global wholesale data centre owner and operator. What is particularly appealing about this REIT is that obtaining planning permission and power in Singapore is challenging, creating a substantial economic moat for existing data centres. It was trading at an attractive discount coupled with a strong and growing dividend yield.

“The next position is Rexford Industrial REIT, which owns, operates, and acquires industrial properties in the Southern California infill market – the fourth largest industrial market in the world, with the highest demand and lowest supply in the US. Logistics are a key part of the digitalisation mega trend and Rexford offers an attractive route to increase the Fund's exposure to this opportunity.

“The final position is Terreno Realty, a San-Francisco based REIT that acquires, owns, and operates industrial real estate in six major U.S coastal markets, which have historically been some of the strongest warehouse markets in the US. Terreno owns 259 buildings, 45 improved land parcels, has 7 properties under development and a landbank of c62.7 acres*. It has an attractive combination of c3% dividend yield and c7% dividend per share growth**. In fact, it has had uninterrupted dividend per share growth since 2013**.”

*Source: US Securities and Exchange Commission, Annual Report on Form 10-K for the Year Ended December 31, 2023

**Terreno.com, 28th March 2024

Important information 

This press release has been prepared by Gravis Advisory Limited (“the Investment Adviser”) and is for information purposes only. It is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Any recipients outside the UK should inform themselves of and observe any applicable legal or regulatory requirements in their jurisdiction.

The information should not be considered as a recommendation, invitation or inducement that any investor should subscribe for, dispose of or purchase any securities or enter into any other transaction with the VT Gravis Funds ICVC, any other Fund affiliated with the Investment Adviser or any of the securities that are the subject of this press release. The merits and suitability of any investment action in relation to securities should be considered carefully and involve, among other things, an assessment of the legal, tax, accounting, regulatory, financial, credit and other related aspects of such securities.

Although high standards have been used in the preparation of the information, analysis, views and projections presented, no responsibility or liability whatsoever can be accepted by the Investment Adviser for any errors, omissions, misstatements, loss or damage resultant from any use of, reliance on, or reference to the contents. The views and opinions contained herein may not necessarily represent views expressed or reflected in other Gravis communications, strategies or funds and are subject to change. 

The VT Gravis Funds ICVC is a UCITS scheme and an umbrella company for the purposes of the OEIC Regulations.

Past performance is no guarantee of future performance.

Gravis Advisory Limited (Registered Number: 09910124) is an Appointed Representative of Valu-Trac Investment Management Ltd, which is authorised and regulated by the Financial Conduct Authority. Gravis Advisory Limited’s principal place of business is: 24 Savile Row, London, W1S 2ES. 


Keep up to-date

Select the funds you’d like to stay up to date with.


Due to regulatory requirements, we are only able to share updates with professional investors in those jursidictions dictated in the terms and conditions for each fund. If you enter a personal email address into the form, it is likely that you will not recieve updates, so please, where possible, provide your work email. If you only have a personal email address but qualify as a Self-Certified Sophisticated Investor, or High Net Worth Investor, please get in touch with us directly, by emailing [email protected].

We only send emails when we have something to say. We'll never share your information. By submitting, you agree to Sparkpost's Privacy Policy and Terms. You can unsubscribe at any time.