The first quarter of 2020 saw a big sell-off in the REITs market and not surprisingly with social distancing measures implemented by various governments in the world, that caused concerns for investors as to the impact on revenue for listed real estate companies and potentially for valuation. Fortunately, there was a correction in the first quarter that provided some relief.
“So we saw a big correction in the first quarter, until the middle of March, and with the subsequent measures put in place by various governments in terms of liquidity into the system and underpinning wages and salaries for furloughed staff, that brought a bit of relief to the market and prices picked up to a certain extent,” says Simon Hedger, senior portfolio manager at Principal Real Estate Investors. “So we now have a situation where the sectors are trading around 25 percent discount to the underlying net asset value of the assets owned by various companies.”
Hedger continues to state t
