Dollar weakens
Dollar flat
Dollar strengthens
Unhedged currency translation erodes HAUZ's USD income
Local-currency rent from a global real estate book flows through an unhedged spot-FX gate; a stronger dollar drains more of it into FX loss and erodes the NAV measured in USD.
HAUZ portfolio
ex-US real estate
rents earned in local currency
JPY
AUD
HKD
GBP
SGD
EUR
22%
12%
10%
6.9%
6.6%
21%
spot FX
unhedged
NAV at spot
USD cash kept
some slippage vs 3.6%
headline ~3.6% trailing
unhedged NAV
eroding over 120d
recent −~11% / 120d
FX loss drain
a share of distributions leaks
dollar strength swings the gate
Spot rates roughly stable, so some slippage
creeps into the USD value of foreign rents.
USD kept
lost to FX