North Star Corporate Finance is delighted to issue its quarterly PAIF Index publication, for the period of Q4 2017. Over the period in Q4 2017 the absolute PAIF Index increased by +1.3%. The corresponding movement in the REIT benchmark over the period was +9.7%. The year-on-year change (Q4 2016 vs Q4 2017) of the benchmark REIT index changed +14.1% compared to +8.7% for the PAIF Index for the period (a relative outperformance of REITs by +5.4%). UK commercial property ended the year in a strong manner with December 2017 reflecting the highest monthly return for three years. According to a market study the total return for December was 1.4% with capital values increasing by 1.0% and rental growth proving to be solid. Similarly to Q3, industrials performed strongly due to performances from capital and rental values.
The NSCF PAIF Index provides an integral benchmark of relative performance of a basket of Property Authorised Investment Funds (“PAIFs”), representing a proxy for the performance of the authorised UK commercial property funds market. The PAIF Index is also assessed against a benchmark of a basket of UK REITs, useful in presenting the clear differentials in valuation approaches and volatility between the UK property open-ended funds market and UK property closed-ended listed market. Our publication includes market commentary and major issues impacting the valuations of the property portfolios and market events and drivers.
To download the full PAIF Index Q4 2017 report, click here or on the below image.
For further information or queries, please contact Andrew Mansson-Lowe, Managing Director of North Star Corporate Finance.
North Star offers technical corporate finance expertise with overall project delivery to funds and corporates in the UK and Europe. Our expertise includes structuring and restructuring funds in the UK and cross-border. For more information about our services please get in touch.
North Star Corporate Finance | 5 St Saviour’s Wharf | 23 Mill Street | London | SE1 2BE