Listed real estate

Even discounting the enthusiasm that any manager of such a REIT can be expected to exhibit ahead of an IPO, Ward has reason to be in chipper mood. Recent figures from the European Public Real Estate Association shows that demand for real estate securities has surged since the global financial crisis. Assets under management of real estate securities funds grew by 68 per cent to $250 billion from 2007 to 2012, according to research by consultancy company Consilia Capital and Property Funds Research for EPRA.

The research estimates that the number of real estate securities funds increased by 39 per cent to 677 in the same period. The most recent figures show that total assets under management for exchange-traded funds (ETFs) pegged to FTSE EPRA/NAREIT real estate indices jumped by 85 per cent to $8.7 billion in the 12 months through to February this year.

“Above-average dividend yields and secure long-term cash-flows generated by listed real estate companies have an immediate appeal to yield-hungry investors. The liquidity, efficient pricing and transparency offered by the listed property sector mean it is also attracting a broader range of investors from defined contribution pension plans to long/short hedge funds,” Philip Charls, chief executive of EPRA, said in a recent statement.