Simon Hedger, managing director and global portfolio manager, Property Securities at Principal Global Investors, will talk about real estate investment trusts (REITs) and the valuation opportunities presented by the market currently at the InvestmentEurope's Thematic Forum Milan 2019 to be held on the 22 of November.
Hedger will talk about the valuation opportunities within the sector which, according to the firm he works for, has not gone unnoticed by REITs and other major institutional real estate investors.
"Despite superior liquidity, niche high growth sectors, and access to public market capital, REITs currently trade at a discount to private real estate values.
Despite superior liquidity, niche high growth sectors, and access to public market capital, REITs currently trade at a discount to private real estate values."
"Today's 10.7% average discount to their average long term price to net asset value (NAV) is the widest since the global financial crisis. This is arisen due to fears, late last year, regarding the potential for rising interest rates and declining earnings growth.
"More recently, bond market yields instead indicate interest rates are likely to remain lower for an extended period, thus underpinning real estate valuations for most sectors. A valuation gap this wide is an opportunity for investors to own REITs at fairly inexpensive relative valuations under current market conditions," says Principal Global Investors.
Hedger is a global portfolio manager for Principal Real Estate Investors, the dedicated real estate unit of Principal Global Investors. Based in London, whilst also overseeing global accounts, he is primarily responsible for the firm's Europe, Middle East, and Africa real estate capability in REITs and listed real estate securities. Simon has 40 years real estate experience in both the United Kingdom and Australia markets as an analyst and portfolio manager.
Prior to joining Principal Global Investors in 2003, his background included a variety of direct real estate related roles with Prudential Assurance Company, along with positions as fund manager for Paladin Commercial Trust, and GEM Commercial Property Trust in Australia. He also spent time on the sell-side as a senior equities analyst for real estate at stockbrokers Prudential Bache/BNP Equities.
For further details about the upcoming Thematic Forum Milan 2019, click here.