Listed retail presenting huge opportunity

The European listed retail sector is showing good value and could favor investors who usually operate in unlisted property markets.

Rogier Quirijns, head of European real estate at Cohen & Steers, says that many parts of the listed retail sector have become so cheap they cannot be ignored. He points out that the ecommerce levels have begun to peak across the continent, creating a balance between online and physical retail that tilts slightly to the latter format.

“Being focused in retail is a bit of a non-consensus [play],” he said. “No doubt some of the private players are still licking their wounds over [the sector, probably. But since COVID, the listed retail sector  has become relatively cheap, and the quality of many assets is high in our view. We can get 8 percent to 10 percent dividend yields from a good balance sheet, very good portfolios and good management teams. That’s something you can’t get in the private market, so for us it makes sense.”