Letter from the Partners — H1 2026
On discipline in a noisy market: where we are passing, where we are leaning in, and how we think about risk during a transitional rate cycle.
Six months into the cycle, we want to share where Dutch Estate Capital is leaning in, where we are passing, and how we are thinking about risk. The short version: discipline.
We are passing on most secondary-city retail. Tenant covenants have weakened faster than headline yields suggest, and our underwriting penalises any asset where the top three tenants account for more than 60% of contracted income.
We are leaning in on forecourt sites with credible EV-transition pathways and on transformation deals where the exit is independent of the financing market — typically converted-to-residential plays with municipal commitments already in hand. We thank our investors for the trust they continue to place in us, and look forward to the year ahead.