US REITs and niche real estate assets are Brexit buying opportunities - Cohen & Steers

Added 28th June 2016

Rogier Quirijns, European Real Estate Securities portfolio manager at Cohen & Steers, argues Brexit could provide some attractive buying opportunities in the UK, particularly in the self-storage, logistics, healthcare and student housing arenas.

US REITs and niche real estate assets are Brexit buying opportunities - Cohen & Steers

Quirijns asserted that companies outside the London office and residential markets should experience less turmoil in the short-term, post-Brexit and provide more opportunities for growth.

In the months before the referendum, Quirijns said he had reduced his allocations to companies in the London-based office and home builder markets to nearly zero, partially due to a perceived stagnation in rental growth.

Quirijns still maintains that position currently and revealed he has positioned his UK allocation to take advantage of the attractively valued UK companies hailing from logistics, self-storage, student housing and health care sectors. 

These sectors are poised to deliver better income and growth prospects, said Quirijns.

“We believe the London office and residential markets will suffer the most from the decision on the referendum. The companies that we own outside of these markets—in the sectors noted above—should experience less turmoil,” he explained.

Given the unchanging air of political uncertainty hovering over the UK and EU, Quirijns, thinks that US REITs could provide attractive short-term buying opportunities. 

Though, US REITS may suffer from short-term mispricings as a result of global risk and worries around Brexit and the actions of the US Fed, he believes this perception will change.

“Many U.S. REITs derive close to 100% of their revenues domestically, but their share prices could be affected by changing perceptions of global risk and worries about the effect on the U.S. economy, even if the Fed becomes more cautious,” he said.

“Against an uncertain global backdrop, REITs’ combination of increasing cash flow and above-average dividend yield may appear attractive relative to other sectors, in the U.S. and elsewhere,” he explained.

Kames Income Hub

home_research_centre

Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

Fidelity Emerging Markets Fund
Fidelity Emerging Markets...

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

Profiles

Viewpoint

Investment Strategy

Feature

Tweets

Events

PA Emerging Markets 2017
PA Emerging Markets 2017

Tuesday 7 February
Bloomsberry Street Hotel, London

Sponsored Content

Investment Strategy

OTHER STORIES FROM LAST WORD...