The property sector has been one of the hardest hit in the Covid-19-related equity market sell-off, declining on average 48% since January.  Highly geared balance sheets, unsustainable distributions and a generally oversupplied market in an increasingly challenging macroeconomic environment has been a near perfect storm for the sector.

The sector has three principal activities: retail, office and commercial/logistics. The longer-term outlook for retail property is challenged by weak consumer spending and social distancing measures. Office rentals are likely to suffer as more employees work from home, and commercial and logistics depend on overall economic activity, which is likely to be very muted...

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