Forward Guidance
Europe’s Property Stocks Are Trapped in a Dysfunctional Market
A fragmented sector isn’t working well for companies or their investors. M&A could be the answer.
Illustration: Matt Chase for Bloomberg Markets
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Would anyone miss Europe’s real estate stocks if they didn’t exist?
They’re an odd assortment. The biggest is a jumbo play on German residential property, then there are a few sizable real estate investment trusts (REITs), including a shopping mall specialist, a warehouse operator, a Paris-focused developer and a pair of UK look-alikes both dabbling in offices and retail. In contrast to the scale and breadth of the New York market, the European industry is a fragmented patchwork of mostly small and medium-size stocks. The sector lacks an obvious pan-European champion.