- Property trusts look cheap enough but the sector still faces its share of drawbacks
- Some of the sub-sectors that struggled in the growth sell-off of 2022 have reasserted their presence
Investment trusts are having another fallow year, with discounts remaining wide and the market not yet interested in backing new raises. The effects of that can be seen across the sector, from real estate investment trusts (Reits) increasingly buying back their own shares to very few vehicles issuing equity.
An extreme sign of this dynamic emerged earlier this month when the Special Opportunities Reit, which was due to invest in UK real estate, fell short of a £250mn minimum fundraise as parts of its flotation efforts and dropped its IPO plans. The investment team will now acquire some of its targeted assets using private capital instead.