Variable GRLI of nine · scored for every 1 km site
Governance is the discount rate for real-asset returns.
The expected return on a real asset is not simply a function of its physical and economic characteristics — it is a function of the legal framework within which ownership, development, and disposition must occur. Secure property rights, predictable contract enforcement, and a competent regulatory environment are not optional extras for institutional investing; they are prerequisites.
Arcanium scores political stability and the security of land ownership rights where each site sits, on one scale that spans every market covered — so a site in one country and a site in another can be compared on this dimension directly, rather than each being ranked only against its own neighbours.
The trajectory matters as much as the level. Markets where governance is improving are, other things equal, undervalued relative to markets with superior but static governance, because improvement reduces the risk premium applied to future cash flows.
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