UK Real Estate: No significant valuation movements in May

研报英文原文证据摘录

UK Real Estate: No significant valuation movements in May

Valuation Method and Risk Statement

The European real estate market can be cyclical and faces risks at a number of levels. The level

of the economy, both macro and local, can adversely affect demand and the ability of tenants

to pay rent. Excessive levels of supply can also lead to falling rents. Rising interest rates can

affect the security of the tenant base, lower development margins significantly, and reduce

investment appetite. Interest rates, bond yields and the relative attractions of other assets

classes can all have an impact on property values. Property values can also be affected by

changes in planning, taxes, technology and lease structures. This risk can be amplified in the

real estate sector through development exposure, gearing and the rating. Our PT for the

sector is economic profit based.

Hammerson can be cyclical and face risks at a number of levels. First the level of the economy

both macro and local can adversely affect demand and the ability of tenants to pay rent.

Excessive levels of supply can also lead to falling rents. Rising interest rates can impact the

security of the tenant base, lower development margins significantly, and reduce investment

appetite. Interest rates, bond yields and the relative attractions of other asset classes can all

impact property values. Property values can also be affected by changes in planning, taxes,

technology and lease structures. These risks can be amplified in the real estate sector through

development exposure, gearing and the rating. Our PTs for Hammerson is economic profit-

based.

SEGRO maintains an overweight position to the UK (57% of capital value), of which the

majority is situated in London and the Thames Valley. Over the past decade they have