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Market | Portfolio update

Positive start into the year 2023 – REITs strongly recover from disappointing year end 2022

By February 13, 2023No Comments

Monthly Briefing
Market | Portfolio update

01 | 2023

Investors switched back into the risk-on modus in January.

Positiver Jahresauftakt 2023

Global stocks rebounded strongly in January.  Incoming economic data pointed to a less severe economic dip than feared. Furthermore, many companies published much better earnings than predicted. The headwinds for the markets therefore diminished significantly. Overall, it was Europe that did best for the fifth month in a row with a plus of +9.94 percent closely followed by North America with +4.78 percent. The Nikkei came in on the third place with a gain of +3.89 percent (all figures in EUR).

This very positive development was also reflected by the global REIT markets. With the exemption of North America, the other regional performances were slightly below the broader equity markets. Best region was North America with a gain of +9.10 percent, followed by Europe with +8.60 percent. Asia came in third with +1,83 percent. Overall, the EPRA Global REIT Index increased +7.90 percent last month (all figures in EUR). The UK REIT index was up +8.08 percent last month and is roundabout 52 basis points behind the European REIT index.

Our model portfolio and our fund “QSF-DeA Global REIT’s” closed last month with a significant gain. With a performance of +8,59 and +8,72 percent for January, both outperformed the Global REIT Index significantly. In addition, the model portfolio was able to achieve a dividend yield of +0.37 per cent (gross without withholding tax) for the first month of 2023.

Sectoral performance

All sectors in the REIT market ended the first month of 2023 in positive territory. The best performing sectors were hotels with +13.56 percent and data centers with +11.33 percent, closely followed by healthcare with +10.20 percent. After having been the worst performer in December, hotels rebounded sharply as further easing of covid restrictions brightened the outlook for better travel bookings in the coming months.

Investors continued to focus on data centers, as demand is still strong while supply has been weak in the last couple of months. This imbalance should give room for more rental growth in the future. Health-care REITs did well, especially those with large senior-housing operating portfolios. They showed significant occupancy improvement which should drive top- and bottom-line growth. Improving occupancy and accompanying rent growth are helping to offset inflationary wage increases that continue to pressure margins.

For retail REITs the picture is still mixed as the outlook for occupiers is difficult as costs are still rising  and consumer spending retreats. That could weigh on share prices.


The upcoming months will be shaky for overall markets and for REITs as the battle with inflation and interest rates will continue. On one hand figures indicate that in the second half of 2023 the economy should do better, and interest rate rises should come to an end. But on the other hand, investors have already anticipated some favorable economic development. Share prices at already lofty levels don’t leave much room for further significant increases. On the contrary, a weaker share price phase must be expected again. So, it is all about incoming economic data and figures and how the central banks will adjust the speed and magnitude of further rate hikes accordingly.

Therefore, at the current stage, we stick to our conservative allocation with an overweight in sectors like data center and healthcare. They are supporting longer term structural changes and with their long-term leases they provide the basis for stable dividends in the coming months. Additionally green buildings may be resilient, as higher building costs slow new developments.

Actual financial health of the REITs, indexation of rents and already published results make us confident that our forecast of a dividend yield of 5.5 to 6.0 percent for 2023 will be reached.

For more information about our “QSF-DeA Global REIT’s” fund, please visit

Your contact persons

Wolfgang Speckhahn

Dr. Wolfgang Speckhahn

Managing Director
+49 173 1811 135

Thorsten Schilling

Dr. Thorsten Schilling

Director Portfolio Management
+49 69 50602 6700