Pan European real estate equities started the New Year strongly (alongside broader equity markets) but gave up those gains and more, resulting in underperformance versus broader European equities with the benchmark falling -2.34%. The Trust’s NAV fell in line at -2.30%. Currency played its part with GBP strengthening against EUR. The Continental element of the benchmark fell less than 1% in EUR terms but when measured in GBP the figure was – 2.1%.
The last month of 2017 has turned out to be very positive for pan European real estate equities with the benchmark (in GBP) rising by 4.98% fuelled particularly by the very strong performance in the UK where stocks collectively rose 8.2%.
Pan European property equities in GBP rose a modest 1.1% in November with the UK a weak performer (-0.1%) again (the UK returned -0.2% in October). The strongest performance came from Germany, Italy and Norway.
Pan European property equities in GBP rose just 0.6% in October with Continental Europe in EUR rising 1.4% whilst the UK languished with a small negative total return of -0.2%. The Catalonian situation dominated the news headlines and led to a rollercoaster ride for Spanish equities and property stocks (as a pure domestic play) were certainly not immune.
Pan European property equities had a disappointing month (-3.5%) when viewed in GBP. Once again currency was a driver and European stocks ex UK when viewed in EUR returned +0.2%, modest but at least positive. After so many months of steady weakening, GBP found a floor against EUR and rallied +4.5% in the month.