FOTBW_PPT_Feb_2023

10/02/2022

Executive Summary

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SUMMARY EXECUTIVE

Total Return

Net Initial Yield

10yr Gilts

GDP

3.3%

1.0% One Year

0.1%

0.2% One Year

-3.3% -10.1%

5.1%

4.4% One Year

One Month

One Year

One Month

One Month

One Month

KEY POINTS

PERFORMANCE

Quarterly investment volume (£m)

Total return (% y/y)

- Investment volumes for Q4 reached just £10.6 billion, the lowest quarterly volume since Q2 2020. 2022 was a tale of two halves; muted H2 investment volumes were in sharp contrast to a buoyant H1. Annual investment volumes totaled £66 billion, 16% below 2021 and 1.6% below the 10-year average.

£25,000

-8% -6% -4% -2% 0%

-2.6%

-3.7%

£20,000

-7.2%

-12.9%

£15,000

-14.9%

-16% -14% -12% -10%

£10,000

- The spike in bonds that we saw as a result of the mini-budget has been mitigated, with ten-year gilts down to 3.3% as of the time of writing.

£5,000

Industrial

Retail

Specialist

Central London Offices

National Offices

£0

- After a period of inactivity, there are signs of liquidity in the market, although there continues to be a gap between buyer and seller expectations.

2006 2008 2010 2012 2014 2016 2018 2020 2022

Source: Real Capital Analytics

Source: MSCI UK Monthly Property Index, December 2022

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