Morgan Stanley updates European property sector performance data

Investing.com -- Morgan Stanley released performance statistics for the European property sector in its latest chartbook covering regional and sector-specific data.

The European property sector gained 2% year to date versus MSCI Europe's 10% increase in euros. On a total shareholder return basis, which includes dividends, the property sector returned 6% compared to MSCI Europe's 12% return.

UK property stocks rose 10% year to date in local currency, while UK equities increased 9%. Logistics and retail emerged as the best performing subsectors year to date, while residential and self storage lagged behind.

The sector trades at a 29% discount to net asset value versus the historical average discount of 17%. NAV valuation dispersion increased materially in recent months and remained above the 10-year average at end July. EPS yield dispersion reached an all-time low.

Morgan Stanley forecasts 2% capital value growth on average across covered UK stocks for 2026, compared to 1% in Continental Europe.

The chartbook includes valuation metrics such as discount to NAV, dividend yield, EPS yield and EBITDA/EV yield. It also contains data on GDP growth, bond yields, capital availability, inflation and currency moves, along with their correlation to property markets.

The report provides long-term data series for European office property markets, including rents, values and yields, as well as e-commerce penetration and logistics rents.

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