March saw the share prices of top real estate investment trusts take a tumble as the MSCI Europe Real Estate Index hit its lowest level since 2009.
British Land’s share price dropped by 13% in March, as did LXi REIT’s. Hammerson’s stock fell by 14%.
The MSCI Europe Real Estate Index, which tracks the share prices of European property companies, hit its lowest level last week since 2009 and the aftermath of the global financial crisis.
Some in the sector fear they will have to resort to mezzanine financing as the banks tighten credit. However, with the average LTV at 30%, most hope there is still plenty of breathing room.
In the private equity space, LTV is much higher.
