REC global commentary
Global real estate securities headed south in June, posting total returns of -2.1% and underperforming equities generally. The UK was the only leading market to show a positive return, at a modest 0.34%. The UK now leads on a 12-month basis, with 35.1% total returns, ahead of Canada (33.9%) and the US (33.3%). UK and European property securities outperformed equity markets, as concerns over a Greek default drove investors to seek shelter in real estate. In June, £4.5bn of capital was raised, down from £7.3bn in May. Secondary issuance fell and there were five small IPOs, totalling £189m, including £30m raised by Swiss company Fundamenta Real Estate. There were £1.4bn of bond issues, a third of May’s total, mainly by Japanese and US companies.