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Recapitalisation will remain a key issue in the coming period for listed stocks, claims James Cowen, portfolio manager of real estate securities funds at Invesco
‘The crisis is not over by any means. Most real estate companies across the globe are talking to equity investors about raising capital.'

Some REITs have tried to raise capital in the past months and failed, simply because sentiment was against them, Cowen adds. 'Even two months ago, success could depend on which week the capital raise was being held, the timing had to be just right. Sentiment is currently a very powerful driver of the market.’

At the same time, a number of listed companies have flawed business models and are expected to fall by the wayside in the period ahead. Cowen puts the figure of potential failures at 5-10%. ‘We will see a Darwinian divide with the survival of the fittest. The highly leveraged companies are takeover fodder. They don’t have a strong future, if indeed they have a future. They will be weeded out.’

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