Pan European real estate equities had a strong month with the benchmark (FTSE EPRA/NAREIT Developed Europe Net TR in GBP) rising 2.55% on the back of the mix of a strong finish to the results season (particularly in Germany and Spain) coupled with the hint of further corporate activity in the UK.
Pan European real estate equities performed poorly in February with the benchmark (in GBP) falling -4.58%. This weakness was clearly not confined to property equities but the sector has now fallen -7.5% from its January 7th peak underperforming the wider equity market. Over the last month there was little differential in performance between the UK (-5.1% in GBP) and Continental Europe (-5.4% in EUR).
Pan European real estate equities started the New Year strongly (alongside broader equity markets) but gave up those gains and more, resulting in underperformance versus broader European equities with the benchmark falling -2.34%. The Trust’s NAV fell in line at -2.30%. Currency played its part with GBP strengthening against EUR. The Continental element of the benchmark fell less than 1% in EUR terms but when measured in GBP the figure was – 2.1%.
The last month of 2017 has turned out to be very positive for pan European real estate equities with the benchmark (in GBP) rising by 4.98% fuelled particularly by the very strong performance in the UK where stocks collectively rose 8.2%.
Pan European property equities in GBP rose a modest 1.1% in November with the UK a weak performer (-0.1%) again (the UK returned -0.2% in October). The strongest performance came from Germany, Italy and Norway.