Green Street Advisors

Property Week: Germany’s listed market overtakes UK’s for first time

The value of Germany’s listed real estate market topped that of the UK for the first time in Q1 of this year, according to data from the European Public Real Estate Association (EPRA).

Germany took the top spot despite 2017 being a bumper year for real estate initial public offerings (IPOs) in the UK. The sector accounted for 15% of all UK IPOs and REITs made up 90% of those. So why has the UK’s listed market fallen behind?

“If you look at returns from the past three years, German-listed companies have had a stellar run,” says Hemant Kotak, an analyst at Green Street Advisors, adding that German companies have also found it relatively easy to raise equity because they typically trade at a premium to their net asset value (NAV), unlike a lot of their UK peers.

“For a period of time German companies have been trading at premiums to NAV, which allowed them to raise fresh equity and invest in a NAV-accretive way. That is a positive driver that hasn’t been available in the UK,” he elaborates.

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To read the full article from Property Week, click here.