Year-to-date performance by sector
Sector drops 28% as attention turns to leverage, liquidity and covenants
Global Listed Real Estate fell 42% to a trough last week, and has since recovered 20% taking YTD performance to -28%. It has underperformed the market (which is down 21%), as attention turned to the sector's financial leverage, and mass lockdowns and store closures call into question the resilience of cash flows. Dividends are now being cut, predominantly in the retail names. Our discussions on the impact are now broadening away from just retail.
Month in review – Non-REITs outperform REITs; Industrial top sector
Listed global real estate returned (-22%) in March, underperforming Equities (-13%). Non-REITs (-16%) outperformed REITs (-24%). Industrial (-7%) and Residential (-18%) were the best performing sectors. Retail (-39%) and Hotels (-38%) performed the worst. By region, Hong Kong (-10%) and Singapore (-19%) outperformed, while Australia (-42%) and the US (-24%) underperformed, in USD.