Nordic property shares with focus on retail continue to trend downwards, while the logistics sector has outperformed due to increasing focus on online shopping, according to the new edition of Pangea Listed Overview produced by Pangea Property Partners.
Over the last three years, Nordic retail property shares have dropped 3 percent while Nordic property shares in general have had a good run, increasing by 42 percent on average.
“The retail sector has been suffering from hard competition and low margins for many years, plus the looming threat from e-commerce. Many centres are performing quite well, but the companies are valued cautiously on the stock market,” said Mikael Söderlundh, Head of Research and Partner at Pangea Property Partners.
Currently, the larger retail companies listed on the Nordic main list are valued almost 25 percent below their book values on average, and some smaller retail companies listed on First North are valued even lower, according to the report.
“The negative trend for retail is a global phenomenon, and the largest listed retail companies in the Nordics have actually performed better than their global peers in recent years,” continued Mikael Söderlundh.
Logistics best performing segment
At the same time, the new shopping patterns have favoured the logistics sector. The Nordic property shares with focus on logistics have climbed 19 percent in the last year, making it the best performing property segment.
“There is very strong investor demand for logistics right now across the Nordics, resulting in record-low yields. We are working on several transactions and there are domestic as well as international buyers competing for the best assets,” said Bård Bjølgerud, CEO and Partner at Pangea Property Partners.
Nordic property shares with focus on office have also performed well, and increased 11 percent over the last 12 months, and mixed-use property shares have increased 8 percent.
Large listed sector with high activity
Currently, the Nordic listed property sector is larger than ever before with 31 property shares on the main list and 23 property shares and developers on First North. Their combined market cap is about EUR 51 billion.
“It’s a steady flow of Nordic property companies going public, and at the same time there is significant buyout activity. Different sectors are priced differently, and we expect the high capital market activity to continue,” said André Lundberg, Partner at Pangea Property Partners.
Pangea Listed Overview is a report about the Nordic listed property sector produced by Pangea Property Partners. The report is published twice a year and covers all property shares listed on the Nordic main list and First North
The report can be downloaded here: Link
Key facts about the Nordic listed property sector:*
Nordic property shares – main list
- 31 listed property shares with a total market cap of €46.5bn (+€3.1bn last 12 months)
- Market cap by country: Sweden (78%), Norway (10%), Finland (9%) and Denmark (3%)
- New listings (last 12 months): Stendörren (from First North), Magnolia Bostad (from First North) and Kojamo
- Share price performance (last 12 months): +7.5%
- Top performing shares (last 12 months): Jeudan (+35%), Victoria Park (+29%) and Catena (+29%)
Nordic property shares – First North
- 23 listed property shares and property developers with a total market of €4.5bn (+€0.7bn last 12 months)
- Market cap by country: Sweden (48%), Norway (48%) and Finland (4%)
- New listings (last 12 months): Cibus, Tre Kronor and Trianon
- Share price performance (last 12 months): +12.1%
- Top performing shares (last 12 months): SBB i Norden (+61%), Byggmästare Anders J Ahlström (+24%) and Amasten (+19%)
* Nasdaq OMX, Nasdaq First North, Oslo Børs (including Eiendomsspar)
- Chart: Nordic property shares performance by sector (last 12 months)
- Chart: Nordic property shares performance by geography (last 12 months)
- Chart: Nordic retail property shares vs global retail property shares (last 3 years)