Property Fund Managers on Life After Covid

As shops and workplaces get ready to re-open in April, two fund managers run through the prospects of each sector, from offices to residential

Holly Black 17 March, 2021 | 9:06AM
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The property sector was hit hard in the Covid-19 pandemic, as suddenly the working, schooling and living habits of people across the globe were flipped upside down. Offices were closed, shops shut and hotels shuttered. As we start to emerge from lockdown, we spoke to two property fund managers about where the investment opportunities are:

On 2020

“2020 was not a good year for us,” says Jason Baggaley, manager of the SLI Property Income trust (SLI), which was down almost 30% last year and is still trading at a 24% discount to its net asset value. At the height of market volatility the trust cut its dividend, but Baggaley reflects he may have been too pessimistic in the extent of the cut and expects a “true up” to come. In the end, the trust collected 93% of the rent due from its tenants last year, though he adds that some rents were reduced through lease renegotiations or breaks and the picture could be slightly worse in the first quarter of this year.

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About Author

Holly Black  is Senior Editor, Morningstar.co.uk

 

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