How has listed global real estate done so far?
The year to-date has proven to be a challenging period for markets broadly. With geopolitical, inflation and growth concerns causing investor expectations to rapidly adjust, most notably around the path of monetary policy, very few asset classes have been left unscathed. Amid a more uncertain backdrop, global property stocks have also seen a decline in recent weeks, triggered by rising real (inflation-adjusted) yields and investors underwriting the impact of slowing economic growth or recessions on real estate income streams. Despite concerns that slowing growth will pressure earnings growth in broader equity markets, the recent earnings season for Reits proved to be strong for companies especially those exposed to areas of structural growth. Positive company outlooks re-emphasised how well-placed sector fundamentals are, with strong tenant demand and limited new supply driven by an increasingly challenging backdrop for new construction. Additionally, the...