Returning recently from the EPRA (European Public Real Estate Association) conference in Berlin I was struck by the accelerating pace of change that is now (finally) underway within the UK REIT sector. A sector, it is fair to say, that has not always been regarded by generalist equity fund managers as being at the forefront of innovation, strategic vision and adaptation. The changes have been brewing for several years but are now both visible, and, most importantly, shaping the strategies of both investors and corporates for the 2020s. So, what are the key forces that are work, and how might they play out over the coming years. I think they can be summarised as follows:
- The diminishing relative importance of the UK market
- Changing sector preferences
- Reduced emphasis on NAV metrics
Let us examine these issues in turn:
A diminishing relative importance of the UK market
