Major European listed property companies should rethink their debt and development strategies, according to John Lutzius of REIT researcher and consultant Green Street Advisors.
Speaking at EPRA London 2012, Lutzius, pictured with the BBC’s Sarah Montague, who moderated the discussion, said that listed companies’ leverage should be as low as 20%. He also said that they were too aggressive on development and it was capital allocation that drove performance.
He suggested that serial underperformers trading on wide discounts to net asset value should use the proceeds of property sales to buy back their shares.
bridget.oconnell@estatesgazette.com
