Key EPRA Index hits €200bn milestone, 100 constituents

Europe’s key listed real estate benchmark reached the 100 constituents milestone in early June and has now exceeded the €200bn market capitalisation level, as global investors target strong yields in the sector and a performance that produced a total return of 18.8% in 2015, the European Public Real Estate Association (EPRA) said.

The milestone was reached when the Frankfurt-based WCM, the German office and retail real estate investor, and Regional REIT, which invests in regional offices and light industrial properties in the UK outside of London, were accepted for inclusion in the FTSE EPRA/NAREIT Developed Europe Index, taking the benchmark to 100 constituent companies for the first time.

Philip Charls, EPRA CEO, said: 'The market is growing fast as global investors increasingly seek solid income investments as an alternative to record low yields in fixed income. Listed real estate provides this alternative with the added advantages of liquidity and a performance that mirrors that of the underlying property assets in the long term.'

In order to qualify for inclusion in the FTSE EPRA/NAREIT Developed Europe Index WCM and Regional REIT had to pass the €203.78 mln free float market capitalisation and EPRA liquidity criteria - companies need to have a free float market cap of 0.10% of the total Developed Europe Index market cap at the cut-off date for the EPRA quarterly index review.

EPRA now counts more than 220 members, representing more than €350bn of real estate assets and 90% of the market cap of the FTSE EPRA/NAREIT Europe Index.