The future of global real estate securities is expected to be a positive one, according to an expert in the field. Portfolio manager at Urdang - a specialist division of BNY Mellon - Allan Supple stated that it has outperformed all other asset classes so far in 2011 and the outlook "remains pretty positive". He also noted that there is increasing movement towards income bearing assets, because "in the long term, income is the most important element of the total return from property".
Mr Supple pointed out that the listed real estate sector is in a strong position because firms operating in this area "have already raised cash levels" and this will help see them through during a period where credit is ever more difficult to come by. He added that this will allow them to "create value through opportunistic developments and acquisitions".
Earlier this week, head of real estate at Standard Life David Paine commented that good quality commercial property is likely to prove to be a resilient asset class, due in part to the comparative sustainability and security of yields generated through such investments.
- Monday 05 September 2011