Category Archives: Factsheet

Global risk assets reversed some of their year-to-date negative performance. Bond yields fell over the month, with investors believing that central banks’ hawkish responses are likely to have a deflationary impact. Unsurprisingly, Pan European real estate equities had a very strong month, with the Trust’s benchmark returning + 9.5%. The same index, when viewed in euros, rose +12.4%.

A difficult May was followed by a terrible June for real estate equities. Investors decided that inflation hadn’t peaked (a hope in May) and that central banks’ policy response would be more aggressive than previously expected as they seek to bring inflation under control. The result was a rapid widening in bond spreads (the difference in yields between different bonds), a steepening of the front end of the yield curve (a widening of the spread between short and long-term bonds) and the pricing-in of a consumer driven recession as mortgage costs rise despite high levels of employment. Our benchmark, FTSE EPRA/NAREIT Developed Europe (total returns, in sterling terms) fell -14.8% and the net asset value fell -15.0%. The bright spot was the share price, which was down ‘only’ -7.2%.

Pan European property equities (FTSE EPRA Nareit Developed Europe total returns, in sterling terms) returned -3.1% and underperformed broader equities, which were almost flat during May but demonstrated significant intra-month volatility. The Trust’s net asset value (NAV) fell slightly less at -2.9% but the share price was hit harder and fell -7.7% over the month. This pushed the discount to NAV out to -9%.

Pan European property equities had a torrid month with our benchmark, FTSE EPRA Nareit Developed Europe (total returns, in sterling terms) falling -6.1%. Continental Europe fared even worse, returning -7.7% (in euro terms). The Trust’s net asset value total return was slightly better, falling -5.3% and the share price fell 3%.

For equities, this was a volatile month of two halves. Given escalation of the war in Ukraine, the property benchmark declined -8.2% in sterling terms through 7^th March. The benchmark then rebounded by +11.4% over the following three weeks. The Trust’s net asset value (NAV) gained +2.9% and outperformed the benchmark by +0.66%.