The quest for certainty

Setting up defensive strategies and identifying robust megatrends are essential action points in uncertain times, writes Timothy Bellman, head of global research at Invesco Real Estate.

As lockdown has given way to a cautious reopening, economies are bouncing back,

albeit probably not back to the levels of economic activity seen prior to COVID-19. If the disruption endures, the consequences would likely be more substantial. The prudent broad investment strategy actions in real estate in the near term are likely to be similar and include three main themes.

The first is prudent cashflow management by efficiently collecting rent, nurturing tenants, hoarding cash, maintaining occupancy and minimising discretionary operating expenses. The second is upholding frequent communication, which Bellman says is essential at both the asset and portfolio level. As is paying close attention to loan covenants, carrying out stress tests, and maintaining low levels of long-durati