Global property equities

REC global commentary

Global stock markets fell in January, with the MSCI AC World Index down 3.8%. Real estate shares also fell, returning -5.9%. Asian REITs and property firms fell furthest, with a -8.9% return (-12.4% for Hong Kong firms).

Spain, France and Russia (the latter up 20.7%) led Europe’s outperformance of other regions; EPRA Europe fell 1.8%, EPRA North America fell by 5.3% and EPRA Asia by 6.9%.

Debt issuance is buoyant (see chart left) and greater than equity raising, with £2.1bn raised globally in seven issues. Three issues were by the largest global REIT, Simon Property Group, which raised £1.4bn.

As usual, January was a quiet month for flotations, with two in the US and one in Brazil, which raised £290m, while 13 secondary issues raised £958m.