Land Equity Investment Trusts (LEITs)

Today’s complex maze of financial instruments presents institutional investors with a true challenge: How to increase return on equity (ROE) for their primary asset—the client. Individual alpha investors face the same question when building their own portfolios. 

TSI International has the right instruments to answer that need. Our land equity investment trust (LEIT®) brand products are simple in construction as well as safe and secure over their life cycle. Consider the state of current markets and you’ll understand why adding a LEIT® to your portfolio makes sense:
  • Price volatility in mainstream asset classes
  • Unusually high positive correlations between traditional asset classes and their subcomponents
  • Uncertainties over valuations due to low levels of visibility regarding the global economy
  • Concerns over inflation in light of large-scale quantitative easing in many economies
  • Inflation outstripping central bank interest rates
As a result, many investors are searching for alternative investments with the following characteristics:
  • “Real” or “hard” assets that better protect principal
  • Simple, secure and transparent investment structures, preferably involving direct ownership of the underlying asset
  • Bigger returns than traditional fixed-income strategies offer as a way to replace lost “risk-free” income
  • Low or negative correlation to traditional asset classes such as stocks and bonds and mainstream alternative investments such as commercial real estate and hedge funds
  • Superior performance in an inflationary environment (to mitigate inflationary risks from low interest rates, quantitative easing, commodity-driven inflation, etc.)
  • Good long-term fundamentals to support capital growth in an investment environment in which short-term visibility is at historic lows


Land equity has the potential to provide all of the above benefits.

A LEIT® combines the attractiveness of Canadian Guaranteed Investment Certificates (GICs) from the world’s safest banks which provide for an ROE that offers investor a complete return on the initial purchase price over the term. When the land equity component is added to the product portfolio it presents a unique upside in that all the benefits reaped via ownership and further development of the land leading to resale providing for significant value added profits directly to the bottom line. The land equity portion with its high margin makes a LEIT®  the secret weapon of wealth creation in any portfolio.
 
The powerful combination of these factors simplify the investor’s decision-making process over other complex instruments via a long-term, risk-free environment that leads it to become the jewel in one’s portfolio. TSI International’s team of professionals in the field of land equity in Canada and our robust support architecture offer a “safe pair of hands” to value creation.