Calling the bottom in European real estate

Key takeaways:

• Despite a rally since Q4 last year European listed property shares remain attractive, trading at a relatively high discount to underlying values with healthy fundamentals in most subsectors.
• Early signs of a pickup in transaction activity is signalling a stabilisation of property values, with companies across most property sectors calling the bottom of the market in recent results.
• Our observations are leading us to be increasingly confident that the recovery in listed property shares can continue. Encouragingly, Listed REITs can now begin to look forward, positioning themselves to take advantage of emerging attractive investment opportunities.