CLS Holdings outperformed every FTSE all-share property company in 2017, according to data from Jefferies.
The company, which invests in a mix of assets across the UK, Germany and France, recorded the biggest share price gains last year by a significant margin.
Its 61.9% growth was nearly 20 percentage points higher than Safestore, which came in second with 42.7%.
CLS spent the year repositioning its portfolio, targeting more German assets.
It sold Vauxhall Square, SW8, to Chinese property developer R&F Properties for £157.8m in April and followed it with the €152.2m (£135m) acquisition of a German portfolio of 12 assets in June.
Appetite for logistics
SEGRO also had a strong 2017, during which it replaced intu in the FTSE 100.
Once again highlighting market appetite for logistics against more traditional sectors, SEGRO outperformed the other FTSE 100 property companies, with share price growth of 34%.
By contrast, Landsec dipped 5.5% over the course of the year, Hammerson fell by 4.5% and British Land rose 9.8%.
Overall, UK REITs underperformed the wider FTSE all-share market, growing by 5.6% in 2017 compared to 9%.
However, listed non-REIT property companies fared better, with 12% growth.
Empiric slumps
The biggest fall in growth came from Empiric Student Property, which showed modest growth until two shocks in the second half of the year, which led to an overall share price loss of 12.3% by the end of 2017.
In September, the company’s half year results showed a 24.3% fall in EPRA earnings per share and a marginal fall in NAV per share in the first six months, despite a 13.4% rise in its portfolio valuation. Its share price slumped 11% within four working days of the announcement.
Empiric went on to issue a trading update in November, highlighting what it called “financial and operational inefficiencies”. As a result, chief executive Paul Hadaway and chief investment officer Tim Attlee waived their rights to a bonus in 2017.
Hadaway was later replaced by Attlee as acting chief executive.
At the time, Empiric said it had put in place financial and operational improvements and cost saving measures, with Baroness Dean, chairman of the company, adding: “The board is confident that Empiric will continue to deliver on its operational efficiencies under Tim Attlee as acting chief executive and Lynne Fennah as chief financial officer, together leading the executive and operational teams.”
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