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EPRA Monthly Brief
November 2017
I was pleased to represent EPRA and the wider membership in the U.S. at the REITworld and on the West Coast meeting with additional global investors and advocating the benefits of diversified asset allocations to listed real estate. It is encouraging to see increasing interest from U.S. based investors in the European listed real estate sector. Our global investor outreach efforts continue next week, when we will host five European companies in Hong Kong, Beijing, Singapore and Tokyo for a round of one-on-one meetings with local investors.  
 
Meanwhile in Europe, our team held a successful MiFID II seminar and a real assets event with the European Real Estate Forum alliance during the EU Invest Week. On the Best Practices Recommendations side, the team was in Madrid where during a Deloitte workshop EPRA further promoted the adoption of financial BPR by listed real estate companies. On the sustainability side, a workshop was held last week in Brussels gathering over 70 participants, including EU representatives, showing the increase interest in environmental, social and governance topics. EPRA will continue to work with the European Commission on its sustainable finance agenda and on promoting energy efficient buildings in Europe.
 
EPRA Research & Indexes Director Ali Zaidi spoke at the IPE real assets and infrastructure conference, and also made the case for listed real estate and how it can fit into a well-diversified portfolio at an event organised by FTSE Russell and Lyxor. This week also sees the last quarterly Index review of 2017.
 
As we are nearing the end of the year, I wish you all a happy festive season and a prosperous and healthy 2018 and I look forward to seeing you at our Insight events in January in London and Amsterdam.

Dominique Moerenhout, EPRA CEO
EPRA news

Research into the logistics industry

The global logistics industry has been experiencing important changes during the most recent years. New consumption patterns across the world, together with a more efficient and integrated model of distribution, have stimulated demand for new logistic properties. The FTSE EPRA/NAREIT Developed Industrial Index showed an annualised total return of 16.38% in the last 3 years (Europe: 14.6%, Asia: 9.3%, North America: 21.5%). This report shows a brief characterisation of the Global Logistics Listed Real Estate industry (GLLRE) in terms of market size and performance, it also presents a short analysis of the main drivers: consumption, supply chain reconfiguration and global trade, together with some industry-experts’ perceptions. The full report will be available on 13 December 2017. Read more about the latest industry relevant publications in the second edition of the EPRA Research Digest.

EPRA Sustainability Workshop shines light on green real estate finance

In late November the European listed real estate sector came together for a Sustainability Workshop on the top floor of THE Hotel in Brussels, overlooking a vast urban landscape. The topics discussed were, among others, sustainable finance and the future of a more sustainable economy in Europe, ESG disclosure and green bonds. “When you look outside the window, it’s obvious why we should be represented in EU policymaking. Most of the world’s wealth is in real estate, so not having the sector as part of the discussion on sustainable finance could cause a disconnect between theory and practice,” Olivier Elamine, CEO of alstria office REIT and chair of the EPRA Sustainability Committee said. Read more about the workshop here and access the EPRA/INREV letter to the High-Level Expert Group on Sustainable Finance here.

How ready is your company for MiFID II?

With the EU’s second Markets in Financial Instruments Directive, or MiFID II, set to enter into force in January 2018, EPRA and CMS London recently held a seminar to provide clarity on how the new legislation will impact listed real estate. The regulation forces brokerages to unbundle corporate access, research and other services from dealing in securities, for which they charge investment managers a commission. The goal is to increase transparency, protect investors and eliminate unnecessary costs. At the event CMS’s Sam Robinson and his colleague Susann Altkemper outlined nine practical steps that investment managers, brokerages and third-party research firms need to take in order to be compliant with MiFID II, even if they are based outside the EU. Read more

Private wealth managers in focus

On Thursday, November 2 EPRA hosted the first Nordic event in London for private wealth managers. We were delighted there were over 30 attendees to listen to the CEOs from Atrium Ljungberg, Castellum and Kungsleden alongside an introduction by Green Street Advisors. There is a positive sentiment in the outlook for Nordic real estate in 2018 that was confirmed by all speakers. EPRA will expand the private wealth manager focus in 2018 and look to build on the recent success of the inaugural Zurich event that took place in late September. The team is planning to target Germany and Switzerland in the year ahead. We are keen to hear from companies that would like to participate and assist with our promotion of European listed real estate. It is a sector of the investment market that is increasing its real estate exposure in the search for income and total return.

Start the year with the right Insight

Don’t forget to register to our FREE Insight events in London and Amsterdam on 8 and 10 January. Get Morgan Stanley’s outlook for the UK property market after Brexit and hear leading CEOs and investors’ sentiment on the listed real estate sector. Discover the London and Amsterdam programme and register here.
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