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March 10, 2017
REIT Update: Share Prices since Brexit
by Khalil and Kane
The major Real Estate Investment Trusts (REITS) have seen their stock prices fall since Brexit. Taking a weighted average by market cap, FTSE 350 REITS have fallen 9.2% from 23rd June 2016 to 9th March 2017. By Comparison, the FTSE 100 and FTSE 250 rose by 15.4% and 9.0% respectively over the same period – while the pound fell 18.2% against the dollar. REITs have risen 17.5% since the 27th June, the Monday after Brexit, when they reached their lowest level over the past 12-months. Much of this growth has come since 1st December, with the weighted average index growing 10.3% since.
Among specific companies, London-centric firms such as Derwent (-19.71%), British Land (-18.43%) and Great Portland Estates (-17.20%) have generally been hit the hardest – with the exception of Redefine International, which is down 20.15%. Three firms have grown over the period: Hansteen Holdings (+8.85%), SEGRO (+10.70%), and Tritax Big Box LTD (+10.52%). All are involved in industrial uses, with Hansteen specialising in UK and European industrial properties, while Tritax Big Box is a distribution centre specialist and SEGRO focuses on warehousing. Retail specialists Shaftesbury (-4.33%) and Hammerson (-0.08%) have fallen by less than most, as has Assura (2.61%) – which specialises in primary care properties.