UK Property Companies Report Improved Conditions

Confidence among property investors is climbing, with shares in UK-listed property companies returning strong results over the past year....

Confidence among property investors is climbing, with shares in UK-listed property companies returning strong results over the past year.

The news, reported by the Financial Times, comes in spite of wider fears over growth in the country's real estate market. Last week, Land Securities revealed it had experienced a rise in asset values that was well ahead of expectations. British Land has followed suit today with a 2.5 per cent increase in its net asset value.

A number of real estate investment trusts have also seen consistent share price growth to asset values. The news provider explained that this means that shareholders are betting that those assets will continue to rise in value and are happy to pay for that increase.

"Nine of the ten larger companies have enjoyed material positive re-ratings. This turnaround is the culmination of strengthening values in London; property seen as an inflation hedge; subsiding fears of a double dip in the economy and low interest rates," Roger Clarke, real estate partner at Matrix, said.

- Tuesday 24 May 2011

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