The post-Brexit bull and bear case for REITs

The lead-up to and events immediately following the UK Brexit confirmed to us that the optimal route into the property sector is via a 'permanent capital' model, specifically listed real estate investment trusts (REITs).

There is a raft of choice available enabling investors to target specific sectors and/or regions within the property market. The recovery in valuations in recent years has 'floated most boats', driven in large part by inflows into open-ended funds that had to be invested. Nevertheless, some sectors have been left behind, particularly in the regional and smaller lot size sub-sector as they were generally below the radar of large funds. Furthermore, some sectors such as logistics assets serving the new e-commerce economy enjoy a structural under-supply of quality buildings versus poc...