Performance as at 30 June 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 June 2020)
- After a weak start to the year, international listed property stocks bounced back in the second quarter of 2020, with most global indices we track recording gains over the three-month period.
- The best-performing areas were Australia (15.6%) and the United States (11.7%), while social unrest and the ongoing geopolitical uncertainty in Hong Kong (4.1%) saw its listed property sector underperform.
- Despite continued concerns around the economic impact of COVID-19, rental collection stats during the quarter showed they did not materially worsen from April to May, with collections above 90%. However, there was a decline in retail collection, which underperformed as lockdown and ‘stay at home’ measures kept many retailers shut.
- In June, Simon Property Group announced it would be abandoning its February 2020 merger agreement with Taubman Centers. The company said COVID-19 had a “uniquely material and disproportionate effect on Taubman compared with other participants in the retail real estate industry”, adding they would be suing Taubman, arguing they had breached some obligations of the contract.
- In transaction news, New York office real estate investment trust (REIT) SL Green completed the sale of a 49.5% joint venture interest in One Madison Avenue to the National Pension Service of Korea and Hines. And Hudson Pacific Properties, a US$10bn owner of West Coast office and studio properties, announced the formation of a joint venture with Blackstone, comprising studio and studio-adjacent properties in Hollywood.
- Elsewhere, UK mall owner, Intu Properties fell into administration after the heavily indebted company failed to secure an agreement with its creditors. The company has appointed KPMG to handle the administration.
- Finally, over the quarter, several companies raised equity to strengthen balances sheets, including US data centre Equinix, Australian self-storage REIT, National Storage and Charter Hall Social Infrastructure.
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