There are three underlying reasons why performance of global REITs can continue, according to AMP Deputy Head of Global Listed Real Estate, James Maydew. Firstly, demand for yield is strong as 15% of the population move into retirement. The second reason relates to supply, whereby only 10% of real estate around the world is securitised, leaving plenty of opportunity for further equity issuances and growth. Thirdly, given the printing of money worldwide, an outbreak of inflation is expected to occur at some point, leading to growth in the value of real estate which acts as a natural inflation-hedge. (VIEW LINK)
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