Property stocks shake off Covid-19 lows
Many of the UK’s biggest and best-known property stocks have left behind their coronavirus lows as the main London market indices hit three-month highs and lockdown restrictions start to lift.
The London Stock Exchange’s FTSE 100, 250 and 350 indices all closed trading on Wednesday at their highest levels since early March, although some of the gains were lost during trading on Thursday. Several real estate investment trusts, for now, are trading at levels higher than at any point since the UK’s lockdown started on 23 March.
SEGRO, London’s largest REIT, has risen from 659.4p per share on 19 March, its lowest point this year, to 872.8p at the close of the market on 3 June – an increase of a third and a lockdown high for the company.
Many of the UK’s biggest and best-known property stocks have left behind their coronavirus lows as the main London market indices hit three-month highs and lockdown restrictions start to lift.
The London Stock Exchange’s FTSE 100, 250 and 350 indices all closed trading on Wednesday at their highest levels since early March, although some of the gains were lost during trading on Thursday. Several real estate investment trusts, for now, are trading at levels higher than at any point since the UK’s lockdown started on 23 March.
SEGRO, London’s largest REIT, has risen from 659.4p per share on 19 March, its lowest point this year, to 872.8p at the close of the market on 3 June – an increase of a third and a lockdown high for the company.
Other big rises have been seen at Tritax Big Box, which closed yesterday up two-thirds on a recent low of 85.9p shortly before lockdown began. LondonMetric has risen by 60% since 19 March, joining SEGRO and Tritax in reaching a post-lockdown high, alongside student accommodation group Unite, up by almost a half on a pre-lockdown low.
Retail-focused REITs have surged as preparations are made for the reopening of non-essential shops. Hammerson shares finished Wednesday at 137.75p, tripling in value from a lockdown low of 43.56p in mid-May, although the company was trading down as of early Thursday afternoon. NewRiver REIT is up roughly 58% from a mid-May low and higher than at any point during the lockdown.
Other big REITs to now trade comfortably above their pandemic lows include Landsec, up by 30% on a lockdown drop; British Land, trading higher than at any point since late March; and Derwent London, up 19% from a low on 19 March.
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