Shares of leading UK real estate investment trusts may be trading at a discount of £3bn, according to new research by PWC.
While it is normal for shares in REITs to trade at a discount to their net asset value, PWC questions the extent of the discount.
PWC said: “Although the shares of these trusts generally trade at a discount to net asset value, on account of a number of factors, including lack of investor control, they have a number of advantages over direct property investment. These include: enhanced access to opportunities and finance; asset management and development expertise and experience; and diversification of risk over a wider variety of assets.
“Our analysis suggests that, in the current environment, it is worth reconsidering the quantum of discount applied to NAV. We calculate the current value of the discount to NAV for REITs to be approximately £3bn.”
sophia.furber@estatesgazette.com
