Sector Keys: Global Real Estate

Research evidence excerpt

Sector Keys: Global Real Estate

Summary: Global Sector Keys

Listed real estate gains as US leads The sector is up 10.1% YTD as US REITs We remain highly selective across US REITs with identified

of June 15, driven by US REITs (+17.0%). The re-rating has occurred opportunities in WELL, AHR, UDR, EQR, PLD, and BRX, given

alongside an increase in the U.S. 10-year, with expectations increasingly attractive valuations and stable to improving growth trajectories. We

centered on a higher-for-longer rate environment. In contrast, gains in continue to favour Healthcare REITs and Industrial. Apartment to

other regions have been more subdued, with Developed Europe flat outperform as supply pressure moderates. More balanced risk/

0.2%YTD and Developed Asia -0.6%. Globally, Data Centers reward for Retail and Triple Net Lease REITs. Cautious on Self

(+34.4%), Hotels (+27.4%) and Self Storage (+19.2%) were the best Storage, Cold Storage, and Office.

performers; Office (+0.5%) and Residential (+1.6%) the worst. By

Europe Our sector positioning remains selective, favouring logistics

region, US (+17.0%) and Hong Kong (+13.1%) outperformed.

where strong balance sheets, high-quality assets and long-dated

Germany (-8.5%) and J-REITs (-8.4%) underperformed. Overall, REITs

income provide resilience in an uncertain macro and funding

have continued to deliver solid operational performance and maintain

backdrop. WDP, Castellum and Unite remain high-conviction ideas,

disciplined, well-structured balance sheets during uncertain times.

By contrast, we are cautious on UK and Cont. European offices.

Improving macro backdrop News of an apparent peace deal

Australia The sector has rallied strongly on expectations of peak

between the US and Iran should be supportive for risk assets, pushing

rates.