More on the Capital Cycle

More on the Capital Cycle

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Competition Neglect

Overinvestment is not a solitary activity; it comes about because several players in an industry have been increasing capacity at the same time. When market participants respond to perceived increases in demand by increasing capacity in an industry, they fail to consider the impact of increasing supply on future returns. “Competition neglect,” according to Harvard Business School professors Robin Greenwood and Samuel Hanson, is “particularly strong when firms receive delayed feedback about the consequences of their own decisions.” The authors of a paper in the American Economic Review sought to explain why so many new entrants into business frequently fail. They found that managers so overestimate their own skills they neglect competitive threats.

This failure to pay attention to the outward shift in the supply curve can be linked to another common behavioural trait, known as “base-rate neglect.” Namely, the tendency of people not to take into account all available information when making a decision. With regards to the workings of the capital cycle, investors focus on current (and projected) future profitability but ignore changes in the industry’s asset base from which returns are generated. At times, this tendency morphs into what psychologists call “cognitive dissonance” – a wilful refusal to consider disconfirming evidence once a course of action has been decided upon.

Skewed Incentives

Skewed incentives exacerbate these well-known behavioural weaknesses. CEO compensation is often linked to short-term performance measures, such as annual changes in earnings-per-share or shareholder returns. Stock prices often react positively to announcements of major capital spending. Companies which invest more often attract premium valuations. The stocks of high asset growth companies often exhibit positive momentum. Executive pay is also frequently linked to a company’s size, as measured by revenue or market capitalization. The incentives are thus skewed for managers to favour growth and to downplay any adverse long-term consequences. There is some evidence that managers with a large ownership stake are more likely to shrink capital employed – through buybacks – if they see few profitable alternatives.

Investors whose compensation is linked to short-term performance are also inclined to myopia. Investment bankers who drive the capital cycle – raising money to finance investment with debt and equity issuance and launching IPOs – are compensated according to their fee generation rather than the outcome their capital-raising activities may have for clients and shareholders. Investment bank analysts serve as cheerleaders; their pay is linked to brokerage commissions, generated by stock turnover. They too have little interest in long-term outcomes.

Fundamentals of Capital Cycle Analysis

Marathon’s approach is to look for investment opportunities among both value and growth stocks, as conventionally defined. They come about because the market frequently mistakes the pace at which profitability reverts to the mean. For a “value” stock, the bet is that profits will rebound more quickly than is expected and for a “growth stock,” that profits will remain elevated for longer than market expectations.

Focus on Supple rather than Demand

Given that the future is uncertain, why should Marathon’s approach fare any better? The answer is that most investors spend the bulk of their time trying to forecast future demand for the companies they follow. The aviation analyst will try to answer the question: How many long-haul flights will be taken globally in 2020? A global autos strategist will attempt to forecast China’s demand for passenger cars 15 years hence. No one knows the answers to these questions. Long-range demand projections are likely to result in large forecasting errors.

Capital cycle analysis, however, focuses on supply rather than demand. Supply prospects are far less uncertain than demand, and thus easier to forecast. In fact, increases in an industry’s aggregate supply are often well flagged and come with varying lags – depending on the industry in question – after changes in the industry’s aggregate capital spending. In certain industries, such as aircraft manufacturing and shipbuilding, the supply pipelines are well-known. Because most investors (and corporate managers) spend more of their time thinking about demand conditions in an industry than changing supply, stock prices often fail to anticipate negative supply shocks.

Analyze Competitive Conditions within an Industry

From the investment perspective, the key point is that returns are driven by changes on the supply side. A firm’s profitability comes under threat when the competitive conditions are deteriorating. The negative phase of the capital cycle is characterized by industry fragmentation and increasing supply. The aim of capital cycle analysis is to spot these developments in advance of the market. New entrants noisily trumpet their arrival in an industry. A rash of IPOs concentrated in a hot sector is a red flag; secondary share issuances another, as are increases in debt. Conversely, a focus on competitive conditions should alert investors to opportunities where supply conditions are benign and companies are able to maintain profitability for longer than the market expects. An understanding of competitive conditions and supply side dynamics also helps investors avoid value traps (such as US housing stocks in 2005–06).

Selecting the right Corporate Managers

Marathon is fond of repeating two comments of Warren Buffett. The first being to the effect that most chief executives have risen to the top of their companies because they “have excelled in an area such as marketing, production, engineering – or sometimes, institutional politics.” Yet they may not have the capital allocation skills required of managers. Such skills are essential, according to the Sage of Omaha, since, “after ten years on the job, a CEO whose company retains earnings equal to 10 per cent of net worth will have been responsible for the deployment of more than 60 per cent of all capital at work in the business.” Capital cycle analysis involves keeping a sharp eye on managers to assess their ability to allocate capital. Marathon spends a lot of time meeting and questioning managers to this effect.

Adopt a Long-Term Approach

Capital cycle analysis, like value investing, requires patience. It takes a long time for an industry’s capital cycle to play out. The Nasdaq started bubbling in 1995. Yet it wasn’t until the spring of 2000 that the dotcom bubble finally burst. New supply comes with varying lags in different industries. As we have seen, it can take nearly a decade for a new mine to start producing. Marathon warned of the dangers of rising mining investment back in May 2006 (see 1.3 “This time’s no different” – yet after rebounding in the wake of the financial crisis, the commodity super-cycle didn’t turn down for another five years. Marathon’s long-term investment discipline, with its very low portfolio turnover, is well suited to applying the capital cycle approach.

Capital Cycle Breakdowns

Capital cycle analysis requires patience, a certain doggedness (willingness to be wrong for a long period) and a contrarian mindset. Once the cycle has turned and overcapacity in an industry has been exposed, the progression of events appears inevitable. That’s hindsight bias. At the time, the outcome never seems so certain. Besides, on occasion the normal operation of the capital cycle breaks down. Over the last two decades, the Internet has destroyed many long-established business models – in advertising (Yellow Pages), media (newspapers), retailing (bookshops), and entertainment (music industry and video rental). Investors who underestimated the disruptive impact of new technology have lost money.35 The capital cycle also ceases to function properly when policymakers protect industries (see 5.4 “Broken banks” and 5.5 “Twilight zone”) and under conditions of state capitalism, as found in modern China (see Chapter 6, “China Syndrome”).

The Tenets of Capital Cycle Analysis

The essence of capital cycle analysis can thus be reduced to the following key tenets:

• Most investors devote more time to thinking about demand than supply. Yet demand is more difficult to forecast than supply.

• Changes in supply drive industry profitability. Stock prices often fail to anticipate shifts in the supply side.

• The value/growth dichotomy is false. Companies in industries with a supportive supply side can justify high valuations.

• Management’s capital allocation skills are paramount, and meetings with management often provide valuable insights.

• Investment bankers drive the capital cycle, largely to the detriment of investors.

• When policymakers interfere with the capital cycle, the market-clearing process may be arrested. New technologies can also disrupt the normal operation of the capital cycle.

• Generalists are better able to adopt the “outside view” necessary for capital cycle analysis.

• Long-term investors are better suited to applying the capital cycle approach.

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Edward Chancellor,

Excerpt from the Introduction of Capital Returns

Introduction to the Capital Cycle

Introduction to the Capital Cycle

Excerpt from the Introduction of Capital Returns

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This book contains a collection of reports written by investment professionals at Marathon Asset Management. What makes these reports stand out, in my opinion, is an analytical focus on the ebb and flow of capital. Typically, capital is attracted into high-return businesses and leaves when returns fall below the cost of capital. This process is not static, but cyclical – there is constant flux. The inflow of capital leads to new investment, which over time increases capacity in the sector and eventually pushes down returns. Conversely, when returns are low, capital exits and capacity is reduced; over time, then, profitability recovers. From the perspective of the wider economy, this cycle resembles Schumpeter’s process of “creative destruction” – as the function of the bust, which follows the boom, is to clear away the misallocation of capital that has occurred during the upswing.

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The key to the “capital cycle” approach – the term Marathon uses to describe its investment analysis – is to understand how changes in the amount of capital employed within an industry are likely to impact upon future returns. Or put another way, capital cycle analysis looks at how the competitive position of a company is affected by changes in the industry’s supply side. In his book, Competitive Advantage, Professor Michael Porter of the Harvard Business School writes that the “essence of formulating competitive strategy is relating a company to its environment.”1 Porter famously described the “five forces” which impact on a firm’s competitive advantage: the bargaining power of suppliers and of buyers, the threat of substitution, the degree of rivalry among existing firms and the threat of new entrants. Capital cycle analysis is really about how competitive advantage changes over time, viewed from an investor’s perspective.

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A Stylized Capital Cycle

Here’s how the capital cycle works. Imagine a widget manufacturer – let’s call it Macro Industries. The firm is doing well; so well, that its returns exceed Macro’s cost of capital. The firm’s CEO, William Blewist-Hard, has recently featured on the front cover of Fortune magazine. His stock options are in the money, and his wife no longer complains about being married to a boring industrialist. Of the nine investment bank analysts who cover Macro’s stock, seven have buy recommendations and two have holds. The shares are trading at a price-earnings multiple of 14 times, below the market average. Macro’s stock is held by several well-known value investors.

Macro’s strategy department anticipates strong demand growth for its products, especially in emerging markets where widget consumption per capita is less than one-tenth the level found in the advanced economies. After discussions with the board, Macro’s CEO announces his plans to increase manufacturing capacity by 50 per cent over the next three years in order to meet growing demand. A leading investment bank, Greedspin, arranges the secondary share offering to fund the capital expenditure. Stanley Churn of Greedspin, a close friend of Macro’s Blewist-Hard, is the lead banker on the deal. The expansion is warmly received in the FT’s Lex column. Macro’s shares rise on the announcement. Growth investors have lately been buying the stock, excited by the prospect of rising earnings.

Five years later, Bloomberg reports that Macro Industries’ chief executive has resigned after longstanding disagreements over corporate strategy with a group of activist shareholders. The activists, led by hedge fund Factastic Investment, want Macro to shutter under-performing operations. Macro’s profits have collapsed, and its share price is down 46 per cent over the last twelve months. Analysts say that Macro’s problems stem from over-expansion – in particular, its $2.5bn new plant in Durham, North Carolina, was delayed and over budget. The widget market is currently in the doldrums, suffering from excess supply. Macro’s long-established competitors have also increased capacity in recent years, while a number of new low-cost producers have also entered the industry, including Dynamic Widget, whose own shares have disappointed since its IPO last year.

The market for widgets is suffering from the recent slowdown in emerging markets. China, the world’s largest consumer of widgets, has vastly expanded domestic widget production over the last decade and has lately become a net exporter. Macro is reportedly considering a merger with its largest rival. Although its stock is trading below book, analysts say there’s little near-term visibility. Of the remaining three brokerages that still cover Macro, two have sell recommendations with one hold.

The ups and downs of this fictional widget manufacturer describes a typical capital cycle. High current profitability often leads to overconfidence among managers, who confuse benign industry conditions with their own skill – a mistake encouraged by the media, which is constantly looking for corporate heroes and villains. Both investors and managers are engaged in making demand projections. Such forecasts have a wide margin of error and are prone to systematic biases. In good times, the demand forecasts tend to be too optimistic and in bad times overly pessimistic.

High profitability loosens capital discipline in an industry. When returns are high, companies are inclined to boost capital spending. Competitors are likely to follow – perhaps they are equally hubristic, or maybe they just don’t want to lose market share. Besides, CEO pay is often set in relation to a company’s earnings or market capitalization, thus incentivizing managers to grow their firm’s assets. When a company announces with great fanfare a large increase in capacity, its share price often rises. Growth investors like growth! Momentum investors like momentum!

Investment bankers lubricate the wheels of the capital cycle, helping to grow capacity during the boom and consolidate industries in the bust. Their analysts are happiest covering fast-growing sexy sectors (higher stock turnover equals more commissions.) Bankers earn fees by arranging secondary issues and IPOs, which raise money to fund capital spending. Neither the M&A banker nor the brokerage analysts have much interest in long-term outcomes. As the investment bankers’ incentives are skewed to short-term payoffs (bonuses), it’s inevitable that their time horizon should also be myopic. It’s not just a question of incentives. Both analysts and investors are given to extrapolating current trends. In a cyclical world, they think linearly.

The Macro example also shows the lag between a rise in capital spending and its impact on supply, which is characteristic of the capital cycle. The delay between investment and new production means that supply changes are lumpy (i.e., the supply curve is not smooth, as portrayed in the economics textbooks) and prone to overshooting. In fact, the market instability created by lags between changes in supply and production has long been recognized by economists (it is known as the “cobweb effect”).

The capital cycle turns down as excess capacity becomes apparent and past demand forecasts are shown to have been overly optimistic. As profits collapse, management teams are changed, capital expenditure is slashed, and the industry starts to consolidate. The reduction in investment and contraction in industry supply paves the way for a recovery of profits. For an investor who understands the capital cycle this is the moment when a beaten down stock becomes potentially interesting. However, brokerage analysts and many investors operating with short time horizons generally fail to spot the turn in the cycle but obsess instead about near-term uncertainty.

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Edward Chancellor,

Excerpt from the Introduction of Capital Returns

Stockwatch...Mainstreet Eq J (TSX.MEQ)

Stockwatch...Mainstreet Eq J (TSX.MEQ)

"The most valuable commodity I know of is information."

Gordon Gekko

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Mainstreet Equity Corp. (MEQ) is defined by a management team that is deeply "founder-led." The company’s strategy and culture are heavily influenced by its founder, who has maintained a consistent, long-term vision since the company went public in 2000.

Senior Management

Executive Leadership

The core management team is notably seasoned, with an average tenure of approximately 9 years, while the Board of Directors averages 20 years of experience.

• Navjeet (Bob) Dhillon (Founder, President, & CEO): Dhillon is the driving force behind Mainstreet’s "counter-cyclical" business model. He owns nearly 50% of the company's shares, aligning his interests closely with shareholders. He is known for a disciplined, non-dilutive growth strategy—meaning the company rarely issues new shares to fund acquisitions, instead using internal cash flow and debt refinancing. He was appointed to the Order of Canada in 2021 for his business achievements and philanthropy.

• Trina Cui (Chief Financial Officer): Cui manages the company's complex financial structure, which involves heavy use of CMHC-insured mortgages to maintain low-cost, long-term debt.

• Joseph Amantea (Corporate Secretary & Director): A long-standing member of the executive team and board, providing legal and governance continuity.

• Johnny Lam (Chief Operating Officer): Responsible for the "value-add" operations—the process of rapidly renovating distressed or underperforming mid-market apartment buildings to stabilize them.

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Management Strategy & Philosophy

The senior management team follows a specific "secret sauce" that distinguishes them from typical Canadian REITs:

Feature	Mainstreet Management Approach
Capital Allocation	Reinvests nearly all profits into growth rather than paying a high dividend (the dividend yield is currently minimal at ~0.1%).
Market Timing	Counter-cyclical: They often "hit the brakes" on acquisitions when markets are overvalued (as they did in 2025) and "hit the gas" during downturns (planned for 2026 with ~$900M in liquidity).
Operational Focus	Concentration on Western Canada (Alberta, BC, Saskatchewan, Manitoba), specifically targeting mid-market "fixer-upper" apartments.
Risk Management	Proactive debt management; as of early 2026, they have successfully locked in a significant portion of their debt at low fixed rates.

Recent Developments (2025–2026)

At the most recent Annual General Meeting (March 2025), the board was re-elected with high shareholder approval (averaging over 80%). Management has signaled that 2026 will be a year of accelerated acquisition, moving away from the "strategic pause" taken in 2025. They are currently focused on deploying nearly $1 billion in available liquidity to take advantage of market conditions in Western Canada.

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Business Model

Gemini said

Mainstreet Equity Corp. (MEQ) operates on a highly specific, repeatable business model often described as a "Value-Add Apartment Compounder." Unlike most Canadian real estate entities that operate as REITs (Real Estate Investment Trusts) and pay out most of their cash to shareholders, Mainstreet is a Real Estate Operating Company (REOC). This structure allows them to retain almost all their earnings to fuel a continuous cycle of organic growth without diluting shareholders.

The "Acquire, Renovate, Refinance, Repeat" Cycle

The core of their model is a four-step process designed to manufacture equity where it didn’t previously exist:

1. Acquire (Below Replacement Cost): Management targets "distressed" or underperforming mid-market apartment buildings in Western Canada. They specifically look for assets trading at $100,000–$150,000 per door, which is significantly lower than the current new construction (replacement) cost of ~$400,000 per door.

2. Renovate (The "Mainstreet Spec"): They use an in-house team of contractors and standardized materials bought in bulk to renovate units. By investing roughly $20,000 per unit into kitchens, bathrooms, and flooring, they can often increase the property's appraised value by $30,000 or more.

3. Refinance (The "Secret Sauce"): Once a building is renovated and stabilized with higher-paying tenants, its value increases. Mainstreet then applies for long-term, CMHC-insured mortgages. Because the building is now worth more, they can often pull out their entire initial capital (and sometimes more), essentially "clearing" their original investment.

4. Repeat: That "pulled out" capital is then immediately deployed into the next acquisition, starting the cycle over again.

Strategic Advantages in 2026

As of early 2026, several macroeconomic factors have strengthened this specific model:

• Counter-Cyclical Strategy: After "hitting the brakes" in 2025 due to market volatility, management is currently "hitting the gas." They entered 2026 with $818 million in liquidity specifically to buy assets while other investors are sidelined.

• Affordability Moat: Mainstreet focuses on "workforce housing" with average rents around $1,250. Because new purpose-built rentals require rents of $2,700+ to be profitable for developers, Mainstreet has a massive competitive advantage in the affordable mid-market segment.

• Non-Dilutive Growth: Since 2000, Mainstreet has achieved massive growth with less than 5% equity dilution. This is rare in the real estate sector and is the primary reason the share price has historically outperformed many larger REITs.

Geographic & Operational Focus

• Western Focus: They are heavily concentrated in Alberta, BC, and Saskatchewan. They benefit from high inter-provincial migration to the West and lower regulatory hurdles compared to Ontario or Quebec.

• Operational Efficiency: They utilize a "clustering" strategy—owning multiple buildings in the same neighborhood—which allows one manager to oversee several properties, significantly lowering overhead costs.

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Current Status: As of March 2026, about 12% of their portfolio is currently "unstabilized" (undergoing renovation). This represents a significant built-in "runway" for future earnings growth as those units come back online at market rates.

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Valuation

Rating the valuation of Mainstreet Equity Corp. (MEQ) requires looking past standard metrics like P/E ratios, which can be distorted by non-cash fair value adjustments. Instead, seasoned investors typically focus on Net Asset Value (NAV) and Funds From Operations (FFO).

As of late March 2026, here is how the valuation sits:

1. The NAV Discount (The "Intrinsic Value" Gap)

The most compelling part of the MEQ valuation is the gap between its stock price and the estimated value of its real estate.

• Book Value/NAV: Recent filings suggest a Fair Market Value (FMV) of approximately $3.8 billion for the portfolio. With roughly 9.3 million shares outstanding, this implies an IFRS book value near $183–$185 per share.

• The Verdict: The stock is currently trading at a slight discount (~4-5%) to its reported book value. Historically, when Mainstreet trades near or below book value, it has been a strong entry point, as management’s "internal" valuation is often considered conservative compared to private market sales.

2. Cash Flow Multiples (P/FFO)

Mainstreet reported Q1 2026 Funds From Operations (FFO) of $2.65 per share.

• Annualized FFO: If we project this over the year, we get an estimated annual FFO of roughly $10.60–$11.00.

• P/FFO Ratio: At a $175 share price, MEQ is trading at approximately 16x FFO.

• Peer Comparison: This is roughly in line with larger peers like Boardwalk (BEI.UN) and Canadian Apartment REIT (CAR.UN), though Mainstreet’s growth profile is generally more aggressive due to its high retention of capital.

3. Analyst Consensus & Sentiment

Wall Street (and Bay Street) remains highly bullish on the stock’s potential for 2026.

• Price Targets: The average 12-month analyst price target is currently $244.50, suggesting a potential upside of ~38% from current levels.

• Rating: Consensus remains a "Strong Buy" among the analysts covering it

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Valuation Summary Table

Metric	Current Estimate (March 2026)	Significance
P/E Ratio (TTM)	~5.8x to 6.2x	Very low, but heavily influenced by fair value gains.
Price / Book Value	~0.95x to 1.0x	Suggests you are buying the assets at or below their appraised value.
Implied Upside	+38%	Based on analyst targets of $244+.
Dividend Yield	0.18%	Irrelevant for valuation; this is a capital appreciation play.

Strategic Outlook for 2026

The valuation currently reflects a "coiled spring" scenario. Management spent 2025 accumulating $818 million in liquidity. As they deploy this capital into acquisitions throughout 2026, the market expects FFO to jump significantly. The current "sideways" movement in the share price ($175 range) may be seen as the market waiting for the first major acquisition announcement of the year.

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Source

Google Gemini

Investor Outlook: Health-care REIT sharpens infrastructure focus

Investor Outlook: Health-care REIT sharpens infrastructure focus

BNN Bloomberg, March 19, 2026 at 4:32PM EDT

Zach Vaughan, CEO of Vital Infrastructure Property Trust, joins BNN Bloomberg to discuss the company and outlook on the Canadian healthcare sector.

A Canadian health-care real estate investment trust is rebranding and narrowing its strategy to focus on infrastructure-style assets tied to essential medical services. The shift comes as the company simplifies its global footprint and leans into long-term, stable income streams.

BNN Bloomberg spoke with Zach Vaughan, CEO of Vital Infrastructure Property Trust, about the company’s push toward North American growth, portfolio simplification and positioning as a hybrid real estate and infrastructure investment platform.

Key Takeaways

• The rebrand reflects a strategic shift toward health-care infrastructure assets with long-term leases and non-discretionary demand.
• The company is simplifying its global portfolio, with plans to exit Europe and New Zealand over time.
• Growth is being refocused on North America, particularly Canada, supported by aging demographics and rising health care demand.
• Investment is shifting toward outpatient and transitional care facilities as health-care delivery moves away from large hospitals.
• Stable, government-backed or insurance-supported cash flows are attracting increasing interest from institutional and infrastructure investors.

Read the full transcript below:

ROGER: Northwest Healthcare Properties has completed its name change to Vital Infrastructure Property Trust, in what it calls an evolution into a focused health-care infrastructure platform. It is now the only Canadian pure-play health-care REIT. Here to tell us more is Zach Vaughan, CEO of Vital Infrastructure Property Trust. Zach, thanks very much for joining us.

ZACH: Thank you. Thank you for having me, and good morning.

ROGER: A busy first nine months for you. Are you settling in? What led to this point?

ZACH: Yeah, it’s been a very busy nine months. Our rebrand is really a reflection of what our business is, which is a health-care infrastructure investment platform. The services performed in our facilities — hospitals, outpatient buildings, surgery centres, imaging clinics — are critical to people’s everyday lives.

We felt the name “Vital” captured that, and including “infrastructure” made sense because our assets tend to be very long-leased, with cash flows supported by highly rated government credit or private insurance. We’re also seeing increased interest from infrastructure-focused capital, so we can attract both infrastructure and real estate investors.

ROGER: And with that, are you worried about capital disappearing given everything unfolding in markets right now?

ZACH: You mean in terms of the broader market?

ROGER: Markets and the turmoil, yeah.

ZACH: I think it could actually send more capital our way. What we do is non-discretionary — hospitals, outpatient clinics, surgery centres. People don’t defer those decisions.

We’re seeing more institutional capital looking at our sector, which historically was more niche. While there’s heightened volatility in public markets, larger investors are looking through that, and something like us is well positioned.

ROGER: So it sounds like you’re looking at more acquisitions. Where are you focusing geographically or within health care?

ZACH: One of the challenges historically was complexity — operating globally with different ownership structures. A key goal is to simplify the business, both geographically and structurally.

Looking ahead, we’re focusing growth in North America, particularly Canada. Demographic trends are very supportive — in the next decade, about a quarter of Canadians will be over 65, and we already spend about $400 billion a year on health care.

What we’re seeing is a shift from inpatient hospital care to outpatient settings. These facilities are smaller, highly specialized and more efficient. That’s a meaningful growth path for us.

For example, we developed an ambulatory surgery centre with Lakeridge Health in Pickering — about 60,000 square feet across four floors with four operating rooms. That facility has helped increase surgical output by more than 10,000 cases.

We’ve also announced a commitment to build a roughly $120-million facility with Royal Victoria Regional Health Centre in Barrie.

ROGER: If you’re refocusing on Canada and North America, what happens to your international portfolio? You have more than 100 properties globally.

ZACH: Over time, we’ll continue simplifying. In New Zealand, we’ve already streamlined our structure and will likely exit that market.

In Europe, we announced a €400-million transaction to sell a substantial portion of our holdings as we plan to exit that region.

Over time, you’ll see us focused on Australia and North America, although these transitions take time.

ROGER: On the financial side, your monthly distribution is three cents per unit. Are you satisfied with that? Where do you see it going?

ZACH: Given the repositioning underway, we think we’re in a good place right now. As we redeploy capital into North America, we expect to see growth over time and will review the distribution accordingly.

ROGER: Zach, we’re out of time, but thank you very much for joining us.

ZACH: Thank you.

ROGER: Zach Vaughan, CEO of Vital Infrastructure Property Trust.

This BNN Bloomberg summary and transcript of the March 19, 2026 interview with Zach Vaughan are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.

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Source

https://www.bnnbloomberg.ca/investing/investor-outlook/2026/03/19/investor-outlook-health-care-reit-sharpens-infrastructure-focus/