Ibex-35 closed January with a 9% revaluation from 8,300 to 9,030 points. This is the best start for the national index since 2001 and one of the best performances on European stock markets. The real estate sector, which was active in January and February with the good performance of global indices, also rose in the stock market. in the United States, iShares USA index. Real estate with major North American assets is up 7.5% so far this yearhowever, this revaluation reached 14% at its latest maximum.
José Ramón Iturriaga, Abante’s partner and fund manager, explains the status of listed Spanish real estate: “What? the market is waiting for the 2008 price, which will not be produced. The cheapest way to buy bricks is through the stock market, because you do it at discounts that are not justified and are a result of the slowdown in the market.” The fund manager said, “You can’t get an apartment, a building, or what some big companies like Aedas Homes or Lar España offer through dividends.”
There were major revaluations in the Spanish real estate sector at the beginning of the year. The largest is the Arima Real Estate company, led by the founders of the extinct Axiare. At the close of yesterday’s trading day, approximately 22% increase so far this yeardespite reaching 27%. However, this company does not enjoy a liquid price in its shares, as only a few thousand shares are traded each day.
Developers are among those who have this liquidity and have also seen huge increases in their prices. Neinor Houses and Catalan Institutional Revenue increased by 14.27% and 18.75%, respectively. The developer, led by Borja García-Egotxeaga, has seen a 32% increase in the stock market since October when it hit its last lows. Its revenue graph is similar to Neinor’s, up 46% over the last four months.
Developer sector maintains rate
Aedas HousesThe other major Spanish organizer, along with Neinor up 5.26% so far this year. The company, mostly owned by the US-owned Castlelake fund, touched 12.5 euros per share in December, closing a 30% rally to 16 euros and then falling to 15 euros. It currently yields a dividend yield of over 11%.
The third listed developer, for his part, MetrovacesaControlled by Banco Santander, BBVA and Carlos Slim, increased by 8.78% in 2023. This company has been trading very steadily between 6 and 8 euros for over three years, while continuing to distribute double-digit dividends among its shareholders.
Smaller in size and much more volatile, Montebalito rose 20% on the stock market in 2023. His situation, however, is paradoxical, as after a close to 50% gain since January, the company has published a relevant fact to make sure it doesn’t understand why the stock has gone up this much or why so many have been traded. although he admitted that he was diving into the search for new investors for the company.
patrimonialists
The great wealthy socimis showed erratic behavior. On the one hand, ColonialAccumulating a huge drop through 2022, this 2023 increased close to 9%. His great rival Merlin FeaturesIn the first two months of the year, it remained flat. timid 1% revaluation. s Spainspecialist in shopping centers, Top rising 10.93% at the beginning of 2023. On the contrary, reality It is the real estate agency that has fallen the most, with a rate close to 3%. insurewhich makes it 1.33%.
José Ramón Iturriaga believes that for real estate companies to rise in the stock market, it is necessary to wait for the stability of rates: “Once we have a clear reference of where rates will stabilize, what determines the price of all assets, we will have more clearly. There is not much justification for the discount made according to the value of the assets for companies to be listed on the stock exchange. Right now I see everything as an opportunity rather than a risk.”