It certainly looks like propertyshares are climbing against the wall again. The GPR 250 Index gained no less than 18.8 percent over the month April 2009. The significant price appreciation marks a turning point and it looks like markets are gaining momentum. Especially US Reits have done considerably well (30.9%) and Europe is not far behind. The GPR 250 Europe index ended 20.3% higher in April 2009, the first positive monthly result of 2009. This brings the YTD figure for GPR 250 to -7.4%.
So, are markets bottoming out? GPR raises the question but doesn’t answer it. I do think most markets have seen their nadir and property shares have benefited from the recent bear market rally. Given the discounts to (adjusted) NAV’s for most listed firms, pricing is still apealing for anyone who’s favouring real estate for the longer term. But rest assured, some price corrections are likely to come about due to market sentiments.
Some investors snap some opportunities at current low levels. For instance: Carpathia and Summit Germany received cash offers for their total share capital. And from regulatory filings, it can be derived that certain investors are buying heavily into some small-to-mid cap property firms.