- The Labour government is supportive of affordable housing.
- Income looks increasingly attractive with rates expected to fall.
The sharp downturn in the listed commercial property sector is bottoming out as expectations of interest rate cuts, lower inflation and enhanced debt financing opportunities improve investor sentiment.
The fall in property valuations in the past two years has been driven by a spike in property yields due to the sharp rise in gilt yields. However, with the spread that yields from real estate offer over the risk-free rate (i.e., the 10-year gilt) now back to its long-term average, this looks an opportune time to lock in the high dividend yields from quality real-estate companies. With an 8 per cent dividend yield and trading 38 per cent below net asset value (NAV), this property investment company offers just that.
