Durable income, compounded patiently.
A disciplined investor in high-quality REITs, infrastructure and dividend-paying businesses, built to deliver growing cash distributions through every market cycle.
Philosophy
Owning durable cash flows, and letting them compound.
At Hilltop Capital Inc., we invest for income: reliable, growing cash distributions from businesses that own essential assets and run them well.
Our portfolio combines a core index holding with a focused group of REITs, infrastructure and energy-midstream operators, alternative asset managers, and preferred securities. Each is chosen for the durability of its cash flows rather than for the size of its headline yield.
We reinvest what we earn and are patient with price volatility, because over time steady, rising distributions do much of the work of compounding.
Aligned interests
We invest only our own capital, so our interests are fully aligned with every decision we make.
Quality over yield
We favour distributions that are well covered by cash flow, and avoid yields that look attractive but cannot last.
Diversified sources of income
Net-lease and residential real estate, pipelines, asset managers and preferreds, anchored by a broad market index core.
Strategy
Investment criteria
We follow a disciplined framework when evaluating income investments, focusing on the sustainability of cash flow rather than the size of the yield.
- 01
Distribution coverage
Dividends and distributions must be comfortably covered by funds from operations or distributable cash flow, with a record of consistency and growth.
- 02
Asset quality
Essential, hard-to-replicate assets such as long-lease properties, pipelines, and data and energy infrastructure, backed by creditworthy counterparties.
- 03
Balance sheet strength
Prudent leverage, staggered debt maturities, and ample liquidity to fund growth without straining the payout.
- 04
Valuation discipline
We buy at reasonable prices relative to cash flow and net asset value, and are cautious of unusually high yields that signal risk.
- 05
Capable, aligned management
Teams with a record of disciplined capital allocation, transparent reporting, and meaningful ownership alongside shareholders.
A core index holding and broad diversification across sectors help limit the impact of any single position, and form the foundation of our risk management.
Portfolio
Current holdings
A focused group of income-producing positions across real estate, energy infrastructure, asset management and preferred securities.
| Company | Symbol | Sector |
|---|---|---|
| Vanguard S&P 500 ETF | VOO | Core / Broad Market Index ETF |
| Enbridge Inc. | ENB | Energy / Pipelines |
| Realty Income Corporation | O | Real Estate / Net Lease REIT |
| Blue Owl Capital Inc. | OWL | Financials / Alternative Asset Management |
| Brookfield Asset Management | BAM | Financials / Alternative Asset Management |
| Virtus InfraCap U.S. Preferred Stock ETF | PFFA | Fixed Income / Preferred Securities |
| Agree Realty Corporation | ADC | Real Estate / Net Lease REIT |
| Patria Investments | PAX | Financials / Alternative Asset Management |
| Camden Property Trust | CPT | Real Estate / Residential REIT |
| VICI Properties Inc. | VICI | Real Estate / Experiential REIT |
| NNN REIT, Inc. | NNN | Real Estate / Net Lease REIT |
| Rayonier Inc. | RYN | Real Estate / Timber REIT |
| Blackstone Digital Infrastructure Trust | BXDC | Infrastructure / Digital Infrastructure |
| Genesis Energy, L.P. | GEL | Energy / Midstream |
| USA Compression Partners, LP | USAC | Energy / Midstream |
| Alexandria Real Estate Equities | ARE | Real Estate / Life Science REIT |