Latest news with #REIT
Daily Mail
2 hours ago
- Business
- Daily Mail
Should investors take another look at a rebounding property sector? The INVESTING ANALYST
So far in 2025, the REIT space has been characterized by a flurry of M&A activity, as buyers look for bargains in a sector languishing at discounts across the board. In this column, Alan Ray, investment trust research analyst at Kepler Partners, looks at why real estate investment trusts could offer an opportunity to shrewd investors. The last few years have been full of contradictions for the listed property sector. First, the pandemic accelerated and cemented positive trends in areas such as logistics that had been underway for several years. Share prices of REITs surged, seemingly in response. But then, in 2022, share prices came crashing down and wide discounts to net asset value became normal. Property, as an income-generating asset class that is usually geared with debt, is naturally interest-rate sensitive and those surges and declines in share prices were really determined by the interest rate cycle, which is an enduring truth that it pays to keep in mind. Behind the scenes though, it has been a very different picture. I'd point to two key trends that the pandemic accelerated. First, the re-wiring of the UK economy to embrace online commerce - requiring highly efficient and well-located logistics and industrial buildings - gathered pace, with countless anonymous square boxes humming with activity. In our daily lives this manifests itself in the extraordinarily short space of time between ordering a £2 roll of masking tape and its appearance in the 'safe space' behind the wheelie bin, but this re-wiring has also profoundly changed interactions between businesses and how supply chains work. Today, businesses are painfully aware of the fragility of 'just in time' international supply chains and are much more focused on local production and supply. And, in a much longer essay, we could also discuss the apparent reversal of globalisation that may push this trend even further. Second, the changing nature of offices and how we use them. While some of the wilder pandemic fantasies about office life have proved to be exactly that, there have been profound changes to the way many of us work even when we are in an office. Again, this trend may be accelerating post-pandemic as we grapple with the implications of AI on the nature of the work that humans do. Office buildings as an overall group have been harder to manage than industrial and logistics buildings, but there are clear positive trends for the right offices in the right locations. There are many other trends to talk about, but these two sectors respectively form over half and a quarter of the value of UK commercial property. And in fact, many retail assets these days are hard to distinguish from a logistics hub so many of the same trends apply here. But there are always going to be buildings in the wrong place at the wrong time, and I'm sure all of us can think of a 'stranded asset' - perhaps a dilapidated office with no hope of renovation or repurposing, with a 'space to let' sign outside. Encounters like that can have an outsized influence on the way we think about property. The reality for many property fund managers over the last few years has been a fight against big declines in share prices and a struggle to repay debt but in stark contrast tenants demanding more and better space, resulting in growing rental income. The right buildings in the right places have, from an income perspective, kept delivering. So, did the stock market get things wrong in 2022 and were those share price falls unjustified? Bluntly, no. The stock market called it about right and property valuations have fallen by 20 per cent or more since then. Zero interest rates had pushed property values too high, and things are back down to more sensible levels, with yields on many REITs now as high or higher than UK gilts. Falling share prices did, however, catalyse a dizzying number of mergers and acquisitions. In some cases, private equity simply bought a REIT at a discount and took it private to harvest the growing income. But very often mergers have occurred between REITs. LondonMetric (LMP), arguably the leading diversified REIT listed in the UK, has absorbed five others since 2019, building a £6bn portfolio focused on industrial and logistics, leisure and entertainment, healthcare and convenience retail. In many cases with long leases and contractual rental uplifts, giving good visibility for income growth over many years. Similarly, Tritax Big Box (BBOX) has built a £6.5bn portfolio partly through acquisitions, focused on large regional logistics hubs and smaller urban logistics assets, leading to rental growth and a rising dividend. While it's easy to dismiss such mergers as 'empire building', management teams need to get their share prices higher to get fully rewarded, so there's little point in buying another REIT unless you are confident that the assets can deliver. Picton Property Income (PCTN) provides an interesting case study of self-help over the last few years. It owns a diversified portfolio, with over 60 per cent in the key industrial and logistics sectors. To help reduce its exposure to offices, management has taken several of these through planning permission to repurpose to much higher value residential assets, with one recent example having views towards St Paul's Cathedral. This just goes to show that location can play an incredibly important role, and PCTN's selection of offices in the right locations has given it more options than would be true for our 'stranded asset' mentioned above. While REITs themselves therefore present attractive opportunities for investors, one stalwart of the investment trust sector is TR Property (TRY), which owns a broadly diversified portfolio of REITs across the UK and Europe, together with a small portfolio of physical property in the UK. Owning a portfolio of REITs rather than buildings directly allows the management team to adapt more quickly, buying or selling shares in different REITs in a day rather than the weeks or months a property transaction might take. TRY has a long history of dividend growth and might just be the right choice for the investor seeking the 'one and done' solution to commercial property in a portfolio. I'd point to one last trend worth thinking about. While 'ESG' in wider investing remains a polarising subject, in property it is much less so. Here, the main elements - energy efficiency and simply put, decent air conditioning - are tangible, measurable and cost-saving. Efficient buildings are very likely to command higher rents. Almost every property fund manager is paying attention to this, but Schroder Real Estate (SREI) has gone one step further, building sustainability goals into its investment strategy, and there is a strong correlation between higher rents and the manager's work to upgrade its buildings. So to conclude, yes, the stock market called it right in 2022, sending share prices of REITs lower. But it's easy to see why property fund managers might have been perplexed, with many of their assets performing well. With interest rates now at more normal levels, and a positive outlook for rental income in the right assets, this is a good time to take a fresh look at the UK's dynamic REIT sector.
Globe and Mail
10 hours ago
- Business
- Globe and Mail
Northview Residential REIT Announces July Distribution
Not for distribution to U.S. newswire services or for dissemination in the United States. CALGARY, Alberta, July 22, 2025 (GLOBE NEWSWIRE) -- Northview Residential REIT (the ' REIT ') today announced its July 2025 cash distribution amounts on its outstanding Class A Units, Class C Units and Class F Units (collectively, the ' Units ') in the amount of C$0.091146 per Unit (C$1.09 per Unit on an annualized basis). The distribution will be payable on August 15, 2025 to holders of Units of record at July 31, 2025. About Northview Residential REIT The REIT is a publicly traded real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario for the primary purpose of indirectly acquiring, owning and operating a portfolio of income producing rental properties in secondary markets within Canada. To learn more about the REIT, visit or contact: Todd Cook, President and Chief Executive Officer Northview Residential REIT Tel: (403) 531-0720 Email: tcook@ Sarah Walker, Chief Financial Officer Northview Residential REIT Tel: (403) 531-0720 Email: swalker@
Yahoo
11 hours ago
- Business
- Yahoo
Franklin Street Properties Corp. to Announce Second Quarter 2025 Results
WAKEFIELD, Mass., July 22, 2025--(BUSINESS WIRE)--Franklin Street Properties Corp. (the "Company" or "FSP") (NYSE American: FSP), a real estate investment trust (REIT), announced today that it expects to release its results for the second quarter 2025 after the market closes on Tuesday, July 29, 2025. The Company will not be holding a conference call/webcast this quarter. This press release, along with other news about FSP, is available on the Internet at We routinely post information that may be important to investors in the Investor Relations section of our website. We encourage investors to consult that section of our website regularly for important information about us and, if they are interested in automatically receiving news and information as soon as it is posted, to sign up for E-mail Alerts. About Franklin Street Properties Corp. Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes. To learn more about FSP please visit our website at View source version on Contacts For Franklin Street Properties Corp. Georgia Touma, 877-686-9496
The Star
12 hours ago
- Business
- The Star
Pavilion-REIT reports solid performance for 2Q
PETALING JAYA: Pavilion Real Estate Investment Trust (Pavilion-REIT) has reported a higher net profit of RM78.66mil for its second quarter of financial year ended June 30, (2Q25), up from RM67.12mil a year ago, driven by stronger contributions from the Pavilion Bukit Jalil mall in Kuala Lumpur. Revenue for the quarter rose to RM213.34mil, compared with RM201.3mil in the same period last year. In a filing with Bursa Malaysia, Pavilion- REIT said the improvement was largely attributable to Pavilion Bukit Jalil, which benefited from a higher occupancy rate and increased income from its exhibition centre and advertising spaces. The REIT added that enhanced advertising revenue from the upgraded LED screen at Elite Pavilion Mall in Kuala Lumpur also supported the improved top line. 'Total property operating expenses were higher by RM2.3mil or 3% compared with 2Q24 mainly due to the increase in marketing expenses driven by campaigns as well as setup cost for advertising-related income,' it said. As a result, net property income rose 8% to RM133.3mil in 2Q25 from RM123.47mil in the previous corresponding quarter. For the first half of this financial year (1H25), net profit rose to RM169.08mil from RM150.28mil in the same period a year ago. Revenue climbed to RM441.52mil from RM419.82mil, while net property income increased to RM272.58mil from RM256.05mil. The REIT noted that the total property operating expenses incurred was higher by 3% at RM168.94mil in 1H25. This was mainly due to set up costs for advertising income and higher doubtful-debt provisions. Earnings per unit stood at 4.60 sen, up 0.49 sen from 4.11 sen in the previous year's corresponding period. Pavilion-REIT declared an interim income distribution of 0.32 sen per unit for the financial year ending Dec 31, payable on Aug 27, 2025. Looking ahead, the REIT said it remains mindful of ongoing cost pressures, including the imposition of service tax on commercial rentals, higher minimum wages and the impact of subsidy rationalisation on operating margins. 'Businesses in the retail industry are adopting a cautious stand, given that cost pressures remain elevated. 'The manager will continue its proactive management of Pavilion-REIT's investment properties to give its unitholders steady distributions,' the REIT said in its filing. The REIT added that the return of large-scale business events and international concerts continue to drive demand as the hospitality market continues to gain traction and international arrivals continue to increase. As of end-June, Pavilion-REIT's portfolio comprises Pavilion Kuala Lumpur Mall, the Pavilion Tower office tower, Da Men Mall in Subang Jaua, Intermark Mall, Elite Pavilion Mall, Pavilion Bukit Jalil, Banyan Tree Kuala Lumpur and Pavilion Hotel Kuala Lumpur. In May, the REIT received unit holders approval to acquire Banyan Tree Kuala Lumpur and Pavilion Hotel Kuala Lumpur for RM480 million. Management said the deals would strengthen its long-term performance and reinforce its presence within the prime Bukit Bintang shopping area in Kuala Lumpur. Pavilion-REIT chief executive officer Datuk Philip Ho said the hotels would be highly synergistic with Pavilion Kuala Lumpur Mall and Elite Pavilion Mall, allowing for an elevated visitor and hotel guest experience. He added the REIT remained focused on owning and managing high-performing retail-led assets, especially super-regional and integrated developments, and the acquisition presented a value-aligned opportunity within the REIT's existing footprint in Bukit Bintang. In a separate filing, Pavilion-REIT said it holds several rights of first refusal, placing it in a strong position to expand its net lettable area going forward.
Globe and Mail
17 hours ago
- Business
- Globe and Mail
Dream Office REIT Announces July 2025 Monthly Distribution
DREAM OFFICE REIT (TSX: ('Dream Office' or the 'Trust') today announced its July 2025 monthly distribution of 8.333 cents ($1.00 annualized) per REIT Unit, Series A ('REIT A Units'). The July distribution will be payable on August 15, 2025 to unitholders of record as at July 31, 2025. Dream Office REIT is an unincorporated, open-ended real estate investment trust. Dream Office REIT is a premier office landlord in downtown Toronto with over 3.5 million square feet owned and managed. We have carefully curated an investment portfolio of high-quality assets in irreplaceable locations in one of the finest office markets in the world. For more information, please visit our website at
