Performance as at 30 September 2020
Performance is after the annual fund charge, and before tax and membership fees (if applicable). For more information, see legal information and disclaimers.
What happened this quarter (3 months to 30 September 2020)
- International property markets had a mixed third quarter, with indices in the US, Singapore and Continental Europe ending higher, while property indexes in Canada, Hong Kong and the UK ended lower.
- During the quarter, US real estate investment trusts released earnings that fell mostly in line with expectations. Numbers showed that the environment remained challenging for retail and hotels as the pandemic weighed on occupancy rates. Meanwhile, logistics firms, medical offices, data centres and cell towers all posted relatively strong results given the headwinds.
- The challenging environment was evident with the news that Unibail-Rodamco-Westfield, owner of shopping centres across Europe, the US, and the UK, announced it would recapitalise its balance sheet. The €9 billion plan involves asset sales, capital expenditure reduction and a €3.5 billion equity rights issue.
- In leasing news, Pinterest announced the termination of its San Francisco-lease agreement with Alexandria Real Estate Equities. The lease equated to 1.1 million square feet of office development and was set to begin in 2025. Pinterest said the decision was part of a post-COVID world where the company would focus on a geographically distributed workforce.
- In September, Broadstone Net Lease (BNL) made its debut on the New York Stock Exchange after raising approximately US$600 million in an initial public offering. BNL owns single-tenanted properties leased to industrial, healthcare, restaurant, office and retail brands. Proceeds from the IPO were used to de-lever, following significant portfolio growth in 2019, as well as providing additional investment capacity.
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