Equity markets generally moved upwards over the quarter as global economic growth was resilient, with the Eurozone notably showing a solid pick-up in manufacturing activity. While the US Federal Reserve remains the only major central bank in tightening mode in terms of monetary policy, hints from others, such as the European Central Bank and the Bank of Canada, pointed towards an eventual path to interest rate normalization. Despite bond yields moving higher in recent weeks, Global REITs managed to end the quarter in positive territory. We saw several REITs that were trading at what we believe is a discount to the net asset value of their real estate assets being taken over by private investors or other listed real estate companies over the month, including US companies such as data centers owner and manager Dupont Fabros and office landlord Parkway Inc. We believe that this heightened level of interest bodes well for the significant number of REITs that could still be trading at a discount to private real estate.
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