Timbercreek Investment Management forecasts attractive total returns for global REITs, indicating strength in REIT cashflow growth and share prices for 2020 in a recent report.
The report highlights major projections and trends in global real estate securities for the year ahead in markets including Canada, the United States, Europe, Asia and Australia.
“We believe strong global labor trends and consumption are positively influencing commercial real estate fundamentals,” said Corrado Russo, senior managing director, investments and global head of securities, Timbercreek. “Historically REITs have proven to deliver predictable income and earnings that are more resilient than other sectors of the economy, yet with yields higher than many fixed income alternatives, especially during periods of moderate growth and stable interest rates.”
Specific to Canadian real estate, the report identifies the following REIT opportunities:
- High levels of immigration driving robust demand for multifamily communities.
- Growing e-commerce penetration and new distribution chains creating increased demand for industrial facilities.
The report also highlights opportunities for the U.S. market:
- Increased demand for cellular towers driven by 5G wireless technology.
- Strong fundamentals for class B residential housing.
Forecasts for global markets include:
- Europe: Attractively priced opportunities in class A brick-and-mortar retail spaces in continental Europe.
- Japan: Demand for lodging expected to rise from inbound foreign travel around the 2020 Summer Olympics in Tokyo.
- Hong Kong: Significant reclassification of mortgage policies and land re-zoning anticipated to support residential demand, despite social unrest.
- Singapore: Surge in demand for data center space in Singapore led by cloud-based powerhouses such as Amazon, Microsoft and Facebook.
- Australia: Self-storage sector expected to generate higher returns with a long runway for growth.
To view the report, visit: www.timbercreek.com
