Economy  

Real estate funds have beaten inflation over 2022

Brodie-Smith said: "Investment companies (Reits) provide a permanent pool of capital which allows their fund managers to take a long-term view of their portfolio and they are not forced sellers of property when demand falls.

"Investors can buy and sell their investment company shares freely on the stock market.

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"Of course, the share price can fall dramatically when property suffers such as during the pandemic but in the past share prices have bounced back quickly when sentiment improves."

In recent months, investment commentators have warned that a prospect of a recession may be tough for the property sector.

However, Brodie-Smith commented: "Many analysts think the sell-off has created buying opportunities in the property investment company sector as discounts have widened. 

"Some property investment companies have dividends which are linked to inflation which is reassuring for investors in this high-inflation environment.

"In addition, the forced selling of properties by open-ended funds could create opportunities for investment companies to buy these properties at low valuations."

simoney.kyriakou@ft.com