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Where can investors find recovery potential in property shares?

Commercial eviction moratoriums and construction site closures hammered earnings for landlords and housebuilders last year, but the worst could be behind some
Where can investors find recovery potential in property shares?
  • Student landlords have the highest earnings growth expectations attached to them for the next two years
  • However, those with larger rates of forecast earnings growth also have higher risk attached to their income streams

The UK may have been thrown back into full lockdown, but analysts have stood by expectations of a recovery in earnings this year for many of the housebuilders, real estate investment trusts (Reits) and property services groups listed in London. 

An improvement on the dismal performance from most property groups during the last 12 months is hardly a great feat. At the extreme end, statutory earnings for retail and hospitality landlords such as Hammerson (HMSO) and Shaftesbury (SHB) were wiped out by heavy devaluations in their retail property portfolios. 

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