GPR 250 Europe Index drops further in May

European real estate stocks turned in a negative performance in the month of May, according to both the GPR 250 Europe Index and the EPRA/NAREIT Europe Index. Global Property Research (GPR) reported an overall dip of 4.1% for European property stocks, representing a major drop from the -0.7% return reported in April 2008 by the index.

Switzerland and Austria were the only countries generating profits last month, with returns of 0.7% and 1.8% respectively. France (-0.0%), Germany (-3.1%), Italy (-3.6%) and Sweden (-4.0%) showed returns above the European average, while countries such as the Netherlands (-4.5%), Belgium (-5.4%), UK (-8.7%), Finland (-11.6%) and Norway (-16.2%) were the worst performing countries last month.

Greece's strong performance was due to the +12.8% gain booked by Babis Vovos I.C., the only Greek company included in the index. Poland is also represented by only one stock, GTC, which reported profits of +2.3% in May.

The EPRA/NAREIT Europe Index also ended in negative territory last month, posting losses of -4.2% all-in-all. The UK was the worst performing country with a negative performance of -8.9%, while Sweden slipped back to 4.1% and the Netherlands lost its gains of the previous month, with returns of -4.2%. France was the only country of the European majors to advance, albeit just slightly, showing returns of 0.1%.

In the year to date, France and the Netherlands top the list with returns of 8.7% and 3.3% respectively. On the flipside, the heavily weighted UK market dipped 12.2% in the red, while Sweden is 5.2% behind. The top five performers of the FTSE/NAREIT Europe Index in May were: Babis Vovos (12.82%); Mercialys (10.09%); Plaza Centers (7.82%); Techonopolis (6.92%); Immofinanz (6.77%). The bottom three performers were instead: Renta Corporación RE (-32.63%); Capital & Regional (-31.33%); and St Mowden Properties (-22.34%).