REITS and Wrongs
Most listed property companies have experienced significant share price reductions since the referendum, implying an expectation of falling property pricing. Initial corrections have been in the order of 20-30% with many REITs now trading at wide discounts to NAV. During 2008, in the worst recession in living history, capital pricing dropped by c. 40%. With no immediate prospect of a recession, it remains to be seen whether this immediate correction is justified, or an overreaction from the market founded on a lack of data.