Dublin, Aug. 04, 2023 (GLOBE NEWSWIRE) -- The "Europe REIT Industry - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)" report has been added to ResearchAndMarkets.com's offering.
The Europe Real Estate Investment Trust (REIT) industry has achieved a remarkable revenue of USD 510 billion in the current year and is set to experience a promising Compound Annual Growth Rate (CAGR) of 15% during the forecast period.
REITs are companies that own and operate income-producing real estate, encompassing apartments, warehouses, self-storage facilities, malls, and hotels. Their appeal lies in their track record of offering substantial and growing dividends, making them a reliable investment choice. However, the potential for growth comes with varying risks depending on the type of REIT.
The European Public Real Estate Association (EPRA), in partnership with the Real Estate Equity Securitization Alliance (REESA), plays a pivotal role in driving the continued growth of the REIT approach to real estate investment across the region.
Impact of the Pandemic on Europe REIT Industry
Like many other sectors, the Europe REIT industry has faced challenges due to the pandemic's economic repercussions. Global political and economic uncertainties, such as Brexit, have also contributed to subdued Initial Public Offerings (IPOs) over the past 12 months. Despite these hurdles, continued growth in the European listed real estate, mergers and acquisitions (M&As), and the rise of the alternatives sector continue to drive the REITs industry forward.
Europe REIT Market Trends
REITs' Debt Heavy Nature
The legal structure of REITs often leads to high debt levels, making them among the most indebted companies in the market. However, investors have grown comfortable with this situation due to REITs' long-term contracts, which generate regular cash flow, such as leases, ensuring consistent debt payments and dividend distributions. An infographic showcasing the outstanding debt of European REITs over the years is provided below.
REITs' Significance in Residential Real Estate Investments in Germany
Germany boasts the largest real estate market in Europe, with approximately half of the properties being residential in nature. In this context, Special Funds and REITs play a significant role in residential real estate investments in Germany. Despite facing challenges from pandemic conditions, existing REITs with exposure in Germany experienced a negative 16% performance in their market capitalization from January 2020 to April 2020, creating opportunities for new investments.
Europe REIT Market Competitor Analysis
The report provides an overview of REITs operating across Europe, offering detailed profiles of major companies. These profiles encompass product offerings, governing regulations, headquarters, and financial performance.
For more information about this report visit https://www.researchandmarkets.com/r/j8xfxx
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