Property

Introduction to Property

There are two main approaches to property investment. The first is to invest in property companies listed on the stock exchange, building a UK or globally-focused portfolio. The second is to invest in bricks and mortar, mainly via funds that own and manage commercial properties directly.

Each approach has different investment characteristics. For example, funds that invest in property companies will move more in line with conventional equity markets over the short-term. Equally, they may be more capital-growth focused, rather than yield-focused.

Bricks and mortar funds will offer greater diversification from conventional equity markets, but are also likely to be more focused on delivering a sustainable yield. However they are also less ‘liquid’ – managers of open-ended funds may not find it as easy to buy and sell the underlying holdings to meet investor redemptions. However this is not an issue that effects closed-end investment companies.

Property funds may specialise in high end 'prime' property, which usually proves more defensive in an economic downturn. Alternatively, they may focus on secondary property, which will be more vulnerable in a downturn, but may outstrip prime property in a buoyant market.

During adverse market conditions, some property funds can suspend withdrawals for periods of time (typically 6 months).

The tax treatment of investments is subject to tax law and HMRC practice which are subject to change. 

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
Aberdeen European Property Share I Acc15.1647.00104.5876.903.00Buy
Aberdeen Property Share I Acc9.0236.07111.36356.881.90Buy
Aberdeen UK Property I Acc0.8214.3133.81565.742.50Buy
Aberdeen UK Property Feeder I Acc0.8414.3333.841,842.102.50Buy
Aviva Inv Property Trust 2 Acc-3.216.9424.341,282.102.30Buy
BlackRock Global Property Securities Equity Tracker D Acc18.8252.2485.341,846.082.19Buy
F&C Global Real Estate Securities 3 Acc17.2255.10-35.441.40Buy
F&C Global Real Estate Securities 2 Acc17.0554.38-35.441.30Buy
F&C Property Growth & Income A Acc NAV GBP6.6529.4470.15257.50-Buy
F&C Real Estate Securities B Acc GBP15.8156.06137.6381.20-Buy
Fidelity Global Property W GBP19.3950.6181.41214.78-Buy
Fidelity Global Property W Acc20.0652.5586.46205.871.67Buy
Fidelity Global Property Y Acc19.7851.5385.02205.871.47Buy
First State Asian Property Securities B GBP Acc25.1843.4875.2411.543.00Buy
First State Global Property Securities B GBP Acc16.2948.3374.17281.932.94Buy
HC Charteris Property A Acc2.8914.3140.581.103.76Buy
HSBC Global Property C Acc8.8732.2759.41327.161.98Buy
Henderson Horizon Global Property Equities H2 Acc GBP19.48--400.93-Buy
Henderson UK Property PAIF I Acc1.9315.3836.353,079.502.80Buy
Henderson UK Property PAIF Feeder I Acc1.9115.3536.322,093.122.80Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
Aberdeen European Property Share I Inc15.1447.03104.4176.903.00Buy
Aberdeen UK Property I Inc0.8114.1033.52565.742.50Buy
Aberdeen UK Property Feeder I Inc0.8314.1333.561,842.102.60Buy
Aviva Inv Property Trust 2 Inc-3.046.9324.191,282.102.30Buy
BNY Mellon Global Property Securities I Hedged Inc GBP2.8633.4860.6311.982.91Buy
BlackRock Global Property Securities Equity Tracker D Inc18.8352.25-1,846.082.19Buy
F&C Global Real Estate Securities 3 Inc17.0454.37-35.441.20Buy
F&C Property Growth and Income I Inc7.1831.7773.22270.744.80Buy
F&C Property Growth & Income E Inc NAV GBP7.0729.9072.75257.50-Buy
F&C Real Estate Securities C Dis GBP15.6956.04137.8381.20-Buy
F&C UK Property 2 Inc3.2216.7328.82348.253.20Buy
First State Asian Property Securities B GBP Inc25.5644.1175.9911.543.00Buy
First State Global Property Securities B GBP Inc16.2147.8573.77281.932.94Buy
HC Charteris Property A Inc2.8914.2240.141.104.25Buy
HSBC Global Property A Inst Inc8.8023.7449.08327.161.90Buy
HSBC Global Property C Inc8.8232.4459.73327.162.00Buy
Henderson UK Property PAIF I Inc1.9815.3236.113,079.502.80Buy
Henderson UK Property PAIF Feeder I Inc1.9715.27-2,093.122.80Buy
JPM Global Property Securities C Inc2.4217.2256.7333.881.61Buy
Kames Property Income B Gr Inc2.5321.85-499.005.38Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
AEW UK Long Lease REIT PLC Ord GBP0.01-----Buy
AXA Property Trust Limited Ord NPV7.9858.16114.42-13.3670.26Buy
Adams PLC Ord EUR0.0123.4617.06622.13--Buy
Aew UK REIT PLC Ord GBP0.0111.37--6.1495.98Buy
Alpha Pyrenees--97.89-99.46-95.832.40Buy
Alpha Real Trust Limited39.94147.20130.33--Buy
Aseana Properties Ltd11.9625.9521.78--Buy
Belvoir Lettings PLC ORD 1P-12.72-4.1968.41--Buy
British Land PLC-13.890.7849.09--Buy
Camper & Nicholsons Marina Investments-17.24-35.14-50.54--Buy
Civitas Social Housing PLC-----Buy
Custodian REIT PLC Ord 1P16.0519.16-12.24103.80Buy
Derwent London-15.6812.3466.32--Buy
Drum Income Plus Reit-1.66---40.49163.00Buy
Eastern European Property Ltd-12.00-37.59-38.03-54.0595.76Buy
Ediston Property Investment Company PLC Ord 1P6.33--0.30109.67Buy
Empiric Student Property PLC8.70--7.41105.90Buy
European Real Estate Investment Trust Limited24.4671.6560.41-9.50179.00Buy
F&C Commercial Property21.7236.8478.965.90137.40Buy
F&C UK Real Estate Investments Limited Ord 1P20.2645.78123.977.0798.30Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
HSBC FTSE EPRA/NAREIT Developed GBP5.3718.9250.2484.71GBXProperty - InternationalBuy
SPDR Dow Jones Global Real Estate UCITS ETF GBP3.8116.1045.77-GBPProperty - InternationalBuy
Source Real Estate S&P US Select Sector UCITS ETF7.943.09--USDProperty - North AmericaBuy
iShares Asia Property Yield UCITS ETF GBP9.3425.2850.5477.63GBPProperty - AsiaBuy
iShares Developed Markets Property Yield UCITS ETF GBP4.8219.0156.3784.23GBPProperty - InternationalBuy
iShares European Property Yield UCITS ETF GBP16.0925.3455.94116.05GBPProperty - EuropeBuy
iShares MSCI Target UK Real Estate UCITS ETF GBP4.920.71--GBPProperty - EuropeBuy
iShares MSCI Target US Real Estate UCITS ETF GBP0.2017.74--GBPProperty - North AmericaBuy
iShares UK Property UCITS ETF GBP6.65-1.8321.0181.24GBPProperty - EuropeBuy
iShares US Property Yield UCITS ETF GBP0.8917.0464.4988.66GBPProperty - North AmericaBuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
KW Europe Real Estate PLC Ord NPV5.8111.82---4.39Property - Direct EuropeBuy

Disclaimer

Interactive Investor does not endorse any particular product. If you are unsure about whether an investment is suitable for you please seek advice from a financial advisor.