QuotedData’s Real Estate Monthly Roundup – September 2024

September 2024

Winners and losers in August 2024

Best performing funds in price terms(%)
PRS REIT15.4
Triple Point Social Housing REIT8.4
Safestore Holdings7.2
Residential Secure Income6.4
Capital & Regional5.8
Primary Health Properties4.8
CLS Holdings4.5
Big Yellow Group4.3
IWG4.2
Sirius Real Estate3.9

Source: Bloomberg, Marten & Co

Best performing funds

The customary summer lull in activity in the real estate sector was evident during August, with news flow at a trickle. This was mirrored in share prices, with the average movement over the month of +0.3%. Once again corporate activity was the main driver behind the largest share price outlier, this month PRS REIT. Its share price bounced at the end of the month as shareholders requisitioned the board calling for two directors, including the chairman, to be replaced (see page 3 for more details). The share price of Triple Point Social Housing REIT responded positively to its board’s announcement that it was making progress with its investment manager review and the news that the fund had replaced a struggling tenant in rental arrears. Residential Secure Income was perhaps boosted by the new Labour government’s ambitious house building target, which is set to provide a substantial tailwind for the affordable housing sector in which it operates. Capital & Regional continues to be the subject of takeover talks, with two parties running the numbers on the company. Meanwhile, Primary Health Properties saw an uptick in its share price perhaps on hopes that a new health secretary will ease the bottleneck in primary health centre development.

Worst performing funds in price terms(%)
Grit Real Estate Income Group(8.8)
NewRiver REIT(5.4)
SEGRO(4.9)
Ground Rent Income Fund(4.5)
Great Portland Estates(3.9)
Helical(3.8)
Shaftesbury Capital(3.5)
Urban Logistics REIT(3.2)
Panther Securities(3.2)
Real Estate Investors(2.9)

Source: Bloomberg, Marten & Co

Worst performing funds

Some real estate heavyweights suffered share price losses in August despite the interest rate cut at the start of the month. The largest negative share price movers in the month, however, was led by pan-African investor and developer Grit Real Estate, with shareholders yet to get behind its renewed strategy focused on diplomatic housing development. With takeover negotiations for Capital & Regional seemingly progressing well, NewRiver REIT’s share price fell perhaps due to the effects of merger arbitrage trades. SEGRO, the largest UK listed real estate company by some margin with a market cap of around £12bn, saw its share price fall almost 5% and it is now negative in the year to date. London office developer
Great Portland Estates and West End landlord
Shaftesbury Capital – both stalwarts of the FTSE 250 index – also suffered share price erosion during the month as positive momentum over interest rate cuts was not maintained. Ground Rents Income Fund continued its run of share price losses as it stumbles towards a difficult wind down. The value of its portfolio continues to be negatively impacted by reforms in the leasehold sector. Another FTSE 250 constituent, Urban Logistics REIT, suffered a 3.2% fall as the market awaits positive updates on earnings growth.

Valuation moves

CompanySectorNAV move (%)PeriodComments
Target Healthcare REITHealthcare1.6Quarter to 30 June 24Portfolio valued at £908.5m, up 0.8% like-for-like
Alternative Income REITDiversified0.4Quarter to 30 June 24Property values increased 0.1% to £102.7m
Custodian Property Income REITDiversified(0.3)Quarter to 30 June 24Portfolio value of £579.6m remained flat on a like-for-like basis
Residential Secure IncomeResidential(0.6)Quarter to 30 June 240.4% decrease in like-for-like investment property values to £315m
abrdn Property Income TrustDiversified(4.1)Quarter to 30 June 24Portfolio value down 0.5% to £405.5m. NAV impacted by estimated costs of wind down
abrdn European Logistics IncomeEurope(4.3)Quarter to 30 June 24Portfolio valuation increased 0.2% to €607.4m. NAV impacted by cost of managed wind down
     
Impact Healthcare REITHealthcare2.6Half year to 30 June 24Like-for-like property values increased 2.9% to £670.1m
Empiric Student PropertyStudent accommodation1.7Half year to 30 June 24Portfolio valuation increased to £1,134.9m reflecting a 1.3% net like-for-like increase
Tritax Big Box REITLogistics1.2Half year to 30 June 24Portfolio now valued at £6.4bn following M&A activity. Up 0.7% on like-for-like basis
Derwent LondonOffices(2.7)Half year to 30 June 24Portfolio valued at £4.8bn, an underlying decrease in value of 1.7%
Capital & RegionalRetail(3.4)Half year to 30 June 240.8% increase in like-for-like valuations over to £374.9 m
CLS HoldingsOffices(10.1)Half year to 30 June 24Portfolio valuation down 4.1% to £1,910.4m

Source: Marten & C