Stor-Age Property REIT’s strong performance for the year to March certainly helps support the argument that portfolio specialisation can pay off handsomely.

Generally, there are two schools of thought, one that believes diversification helps investors ride out difficult economic conditions and another that holds that specialisation – be it offices, industrial or retail – is the key to outperformance. The argument in favour of specialisation is that the management teams are able to focus on one particular property type such as logistics, residential or retail, and become experts in that field. The problem with a general property fund is that a CEO may run the risk of being a jack of all trades, but a master of none. ..