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As I am stepping down in a few days I would like to look back at some of our successes. The spread and constant improvement of REIT regimes in Europe; real estate’s recognition as a stand-alone sector within GICS last year with FTSE Russell investigating a similar move; over 100 constituents of the FTSE EPRA/NAREIT Developed Europe Index; a higher than ever level of compliance with EPRA Best Practices Recommendations in financial reporting, are just a few of the highlights that made my time at EPRA memorable.
 
While we are facing strong challenges to the existing political order in Europe and worldwide, with populism and the uncertainties it brings, the listed industry has never been stronger, and we may see some pleasant surprises.
 
I am confident I am leaving EPRA in good shape. And during this transitional moment for the Association I will accompany my successor Dominique Moerenhout over the next couple of months to ensure that this period is smooth and successful. It will undoubtedly be a busy time. On top of the EPRA Index quarterly review, the Reporting & Accounting summit in April and the preparations for our Annual Conference in London, we will also visit China with the Index Europe top three companies.
 
I would like to extend a very warm thank you to all the EPRA membership, chairmen, Board, committee members and staff as well as our partners in Europe and abroad, for their generous help and support over the past 10 years. I wish Dominique Moerenhout the best of luck and I hope he has as much fun in this role as I had over the last decade.

 

Philip Charls
EPRA CEO
EPRA NEWS

Ten years of growth and transformation

The real estate sector has experienced a tremendous growth between 2007 and today, with the market capitalisation of the FTSE EPRA/NAREIT Developed Europe Index rising by 88% from EUR 102 billion to EUR 192 billion. Worldwide the expansion in the listed real estate market has been even more impressive as the market capitalisation of the Global Developed Index jumped 130% from EUR 543 billion to EUR 1.25 trillion. While the financial crisis proved to be a watershed event for the European listed industry, it ultimately led to a string of successful refinancing for the larger companies and healthier, lower levels of leverage. And since the trough of the market cycle in 2009, listed real estate’s share of the global equities market has tripled. Investors have been drawn to the listed sector because of the attractiveness of the dividend income-producing model of the REIT regime in particular, but also thanks to improved standards of reporting transparency and sustainability. Read more about the evolution of the European listed real estate in the February edition of the EPRA Industry Newsletter and discover EPRA’s milestones. Read the interview with Philip Charls as he steps down after a decade as EPRA CEO.

Transparency in financial reporting

"EPRA Best Practices Recommendations are about trust, and with trust comes lower capital costs for a firm," said Simon Robson-Brown, portfolio manager at CBRE Clarion Securities during the recent financial BPR workshop in London. Following two successful workshops held in Stockholm and London, it is time for the series to continue with a focus on the German real estate market. Co-hosted with ZIA and Deloitte Germany, the workshop aims to showcase why the investment community is keen on BPR compliance. It also provides with an excellent opportunity for companies to engage with investors, auditors and peers to discuss and understand best-in-class real estate industry reporting standards. Check the agenda and register here. Read more about the importance of transparency and compliance with EPRA financial BPRs in the interview with Jean-Michel Gault, Chairman of the EPRA Reporting & Accounting Committee and Deputy CEO of Klépierre.

Capital Markets Union

The Capital Markets Union (CMU) is a new frontier of Europe’s single market. Deeper and more integrated capital markets will lower the cost of funding and make the financial system more resilient. It aims to reduce the cost of raising capital, increase options for savers across the EU, facilitate cross-border investing and attract more foreign investment into the EU. To achieve these targets, the European Commission has proposed an action plan containing a number of legislative proposals to be completed by 2019. As part of its efforts to achieve a Capital Markets Union, the Commission has recently launched a public consultation on the CMU mid-term review. "This mid-term review consultation will help shape the next phase of our work to build a single market for capital in Europe,” said Valdis Dombrovskis, Commission Vice-President responsible for Financial Stability, Financial Services and Capital Markets Union. EPRA believes that the consultation provides our industry with a good opportunity to address policy initiatives relevant to our sector. As part of a response, the EPRA Public Affairs team together with the Regulatory Committee plans to integrate ideas for improvement to the consultation on issues such as the EU Common Corporate Consolidated Tax Base (CCCTB), Solvency II calibration or a Pan-European Personal Pension product (PEPP). The deadline to respond to the consultation is Friday 17 March. 

Annual Reporting & Accounting Summit

EPRA invites all CFOs and Financial Directors to the 2017 edition of the R&A Summit - to be held in London, on 5th April. Top discussion points include:
  • Real Estate Fintech: revolution or hot air?
  • Maintenance capex: are companies disclosing enough?
  • Accounting updates 2017
  • APMs: adding value or workload? 
To participate, please e-mail: events@epra.com 
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