First State's head of global property securities Stephen Hayes gives an overview of the good news paving the way for global REITS' strong performance.
After three years of very good returns, global REITs are still in a strong position. The current low interest rate environment means they have access to extremely cheap debt capital. Interest cover ratios are strong, balance sheets are generally in good shape, and occupancy rates high. Global REITs are now able to proactively spend capital on re-development programmes, laying the ground for future cashflow growth. Major commercial property landlords are benefitting from increased demand and higher occupancy rates for existing property assets. In London, vacancy rates for the City and ...
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