Listed real estate, the usual refuge when the stock markets go down, has not fulfilled its defensive role with the health crisis.
Quite the contrary.
When the pandemic hit Europe, the sector suffered a dramatic fall: in just one month, between its peak on February 19, 2020 and its low on March 18, it lost more than half of its value.
Investors panicked.
They feared the accumulation of unpaid rents and cascading bankruptcies in businesses.
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The massive aid deployed by the States made it possible to limit the damage.
The real estate companies have also quickly found color on the stock market.
They ended the year 2020 with a decrease limited to around 10%.
But they still lag behind the rest of the coast.
Since the start of the year, the benchmark real estate index for the euro zone, the FTSE Epra Eurozone, has gained around 8%.
At the same time, the general Stoxx Europe 600 index soared by almost 20%.
The clue hides
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