TThe fund benchmark, the FTSE EPRA/NAREIT Developed Rental Net Total Return Index, recorded a net total USD return of -1.73% for the month of November. The best performing listed real estate market was the UK which recorded a total USD return of -0.14% for the month. Canada recorded the lowest total USD return of -7.53%. The best performing sectors globally for the month in USD were Data Centres (2.09%), Industrial (1.81%), Storage (-0.26%), Apartments (-1.19%), and Malls (-1.52%).
The worst performing sectors were Hotels (-9.73%), Gaming Net Lease (-7.18%), Health Care (-4.25%), Student Housing (-4.04%), Manufactured Housing (-3.78%). Year-to-date (YTD), the fund benchmark recorded a net total USD return of 20.63%. The best performing listed real estate market was the US, which recorded a total USD return of 31.48%. Singapore recorded the lowest total USD return of -2.84% year to date.
The best performing sectors globally YTD in USD were Storage (66.36%), Single Family Housing (49.71%), Manufactured Housing (45.25%), Industrial (43.99%), and Apartments (33.94%). The worst performing sectors were Hotels (-2.80%), Office (10.26%), Gaming Net Lease (11.93%), Health Care (12.65%), and Diversified (15.58%).
News during the month was dominated by significantly increased numbers of Covid cases and the new omicron mutation and stricter government policies in most of Europe and Asia. While early indications suggest that the new variant may be less virulent than past varieties, investors remained concerned over the government response.
Market movements were indicative of expectations that the U.S. will avoid the type of economic restrictions faced in Europe and Asia. Relative to fixed income the real estate sector screens cheap, with expected total return spreads near all-time highs. The estimated forward FAD (Funds Available for Distribution) yield for the sector is 4.14%. Source of data: Bloomberg, Company Information and Catalyst Fund Managers