This article first appeared in Investors’ Chronicle entitled: UK property investors need to be more American.
TR Property’s fund manager, Marcus Phayre-Mudge, featured in an article for Investors’ Chronicle by Hugh Moorhead, investigating why UK property investors who look to compare valuations to their US counterparts have a problem due to US real estate companies and investors lack of use of price to net asset value (NAV) ratios, which is the UK sector’s preferred valuation method.
The piece delves into the limitations of NAV, using the example of LondonMetric’s portfolio rising by £0.6bn in 2022 but falling by the same amount the following year. The piece delves into the argument that the focus on NAV restricts capital raising, since issuing shares below NAV is seen as value-destructive.
Offering his view, Marcus stated: “The historic obsession with not raising below NAV has been damaging,”.
To read the full article, click here: UK property investors need to be more American – Investors’ Chronicle
The value of your investments can go down as well as up and you may get back less than you originally put in. Approved by Columbia Threadneedle Management Limited on 08/09/2025
