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The Role of REITs in the European Economy

The Role of REITs in the European Economy
Hans Op‘t Veld, Research Fellow Amsterdam School of Real Estate ASRE, confirmed Speaker at the Iberian REIT & Listed Conference

The Iberian REIT & Listed Conference 2025 is set to host Hans Op’t Veld, Research Fellow at the Amsterdam School of Real Estate (ASRE), who will deliver a keynote speech on the pivotal role of REITs (Real Estate Investment Trusts) in the European economy. The event, organized by EPRA - European Public Real Estate Association - and Iberian Property, will take place on February 6th, 2025, at the exclusive LOOM Azca venue in Madrid.

Hans Op’t Veld’s presentation will dive into the evolution of REITs as a critical financial instrument, emphasizing their role in stabilizing financial markets, especially during periods of economic turbulence. Drawing insights from his extensive research, he will shed light on how REITs act as a buffer during market dislocations by providing liquidity and financial resilience. He will also discuss their significant contributions to both equity and bond markets, underscoring their growing importance in Europe’s financial landscape.

Some key takeaways from his findings include:

  • Crisis Mitigation: European REITs have demonstrated resilience during financial crises, aiding the real estate market by maintaining capital flow and liquidity.
  • Financial System Stability: By reducing dependence on commercial banks, REITs help bolster systemic stability.
  • Debt Market Influence: REITs are major contributors to the bond market, issuing higher-rated bonds and promoting disciplined financial management.
  • Future Challenges: With Europe facing increasing social and environmental demands, REITs are poised to play a key role in sustainable investment in the built environment.

The Iberian REIT & Listed Conference, now in its 7th edition, is the region’s premier forum for discussing the opportunities and challenges in listed real estate. This year’s event will spotlight real estate’s dual equity and bond-like qualities, which make it a favored choice for investors seeking diversification and inflation protection.

Bringing together leading market players, analysts, and institutional investors, the conference will explore how listed real estate offers the flexibility of equities alongside the steady income of direct real estate investments. With listed real estate in Iberia valued at $32.27 billion (as of September 2024), the event promises to provide critical insights into this burgeoning sector.

Moreover, the event returns after a key moment for investment where a Spanish political party (PSOE) proposed a tax package that includes a SOCIMIs tax reform, which ultimately could mean placing 15 billion euros of investment in Spain at risk.

The national regulatory entity, CNMV, called for ‘extreme caution’ in the face of the proposed change, while asking not to encourage relocation, as these tax advantages are given in other European countries, meaning Spain would lose competitiveness.

SOCIMIs are currently only taxed at 1% in corporate income tax, although this tax advantage is offered in exchange for distributing at least 80% of the profit in dividends to their shareholders, who will be the ones who pay tax on this money. If the proposed measure is approved, the SOCIMIs would lose their tax exemption and would be taxed at 25% corporate tax, which would reduce their cash generation and ability to pay dividends in the same proportion.

Don't miss out and reserve your spot now for this flagship event HERE!

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