Property Stocks May See Downside Despite Strong Results, RBC Says
- Sector has been pummeled by central banks’ rate campaigns
- Canada REITs at ‘meaningful discount to net asset value’
Morning commuters near Union Station in downtown Toronto
Photographer: Cole Burston/BloombergThis article is for subscribers only.
Battered Canadian real estate stocks may fall even further if interest rates continue to climb, but the sector is posting strong earnings and trades at a large discount to net asset value, according to RBC Global Asset Management Inc.
The S&P/TSX Real Estate Sector Index has plunged 30% this year, making it one of Canada’s worst-performing groups and putting it on pace for its biggest annual drop since 2008.