UK REITs are in a 鈥榮weet spot鈥� after reducing their leverage and reorganizing in response to industry-wide issues exposed by the global financial crisis, according to EPRA Chairman David Atkins.
UK REITs are in a 鈥榮weet spot鈥� after reducing their leverage and reorganizing in response to industry-wide issues exposed by the global financial crisis, according to EPRA Chairman David Atkins.
While this year鈥檚 economic outlook in the UK is tough, steps taken by companies to specialize, drive rental growth and proceed with selective developments mean prospects are positive for the sector, Atkins, who is also chief executive of Anglo-French retail specialist Hammerson, said in a panel discussion at EPRA鈥檚 Insight conference in London earlier this month.
Bank of America Merrill Lynch investment analyst Bernd Stahli started the discussion by challenging UK REITs to do more to improve their operational performance to appeal to investors and halt the sector鈥檚 slide to a 1.5% share of the stock market.
Tristan Capital Partners CEO Ric Lewis noted a slow improvement in investor appetite for risk, echoed by fellow panellist Rob Noel, chief executive of Land Securities, who said opportunities are beginning to appear in retail outside London.
John Burns, chief executive of Derwent London, expects no change in the enduring demand for central London properties, while panellists predicted that the coalition government would seek to boost the economy in the build-up to the general election, to be held by spring 2015.
