Balancing yield and risk in the property sector

Bricks and mortar still holds potential

clock
Richard Williams of QuotedData
Image:

Richard Williams of QuotedData

The lure of an attractive yield has made property companies and real estate investment trusts (REITs) particularly interesting at the moment.

But, of course, with a healthy yield comes some unhealthy risk. Just look at the retail property focused companies for evidence of this. The structural shift impacting retail is well documented. The rise of online shopping (now almost 20% of retail spend) has put many traditional high-street retailers in the mire. It has seen many bite the dust and almost all go through some form of 'right-sizing' of their store estate. The effect on rental income for retail landlords has been monumental and has led to huge write-offs in property values, leaving many trading at significant discount...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment Trusts

Mike Preston, partner at Cleary Gottlieb

Private equity in sport: A growing opportunity

Expected to grow to $500bn

Mike Preston
clock 11 August 2022 • 4 min read
Rob Murphy, managing director of financials at Edison Group

Investment companies can provide returns despite market uncertainty

Increase exposure to ESG

Rob Murphy
clock 11 August 2022 • 4 min read
Markus Hansen has been a portfolio manager for Vontobel's Quality Growth Boutique since June 2020.

Vontobel's Hansen drops Adidas for Hermès as a European recession looms

Shopping after growth derating

clock 10 August 2022 • 2 min read
Trustpilot