The eagerly-anticipated arrival of REITs has had little impact on the stock market despite the FTSE 100 surging to a new six-year high yesterday.
Following the conversion of nine UK property companies to REITs on Monday, the new tax-efficient vehicles had strong performances but did not make it into the ranks of yesterday’s top players.
Five of the six largest property companies saw their share price increase, while shopping centre developer Liberty International was amongst only five FTSE 100 constituents to show a loss yesterday.
Land Securities, the UK’s largest and the world’s third-largest REIT, saw the biggest increase with a 10p rise to close at £23.33 yesterday and has gained another 5p in trading today.
The figure is 694p higher than the share price 12 months ago.
British Land and Hammerson both rose 7p to close at £17.21 and £15.84 respectively.
British Land has risen a further 2p this morning, while Hammerson has increased by 1p.
Slough Estates rose 2p to 787.5p although it has lost 1p in trading today, while Brixton has gained a further 6p following a 1.5p increase yesterday.
Central London developer Great Portland Estates has this morning lost 5.5p from its slightly strengthened closing price of £7.01 yesterday.
Harry Hyman’s Primary Health Properties and Workspace Group have both made marginal gains of .75p and .25p this morning.
Liberty International has this morning risen 5p to make up for yesterday’s dip when it closed down 3p on £13.93.
References: EGi News 03/01/07
