Concerns that hybrid working and working from home are here to stay has led analysts at Bank of America to warn that real estate’s “glory days are over”.
The warning saw shares in many of the sector’s listed landlords, including Landsec, Workspace and GPE, fall by more than 5%. British Land, which analysts earmarked for a potential dividend cut, was the worst hit, dropping by 9%. Derwent London fell by 4%.
In total, the falls wiped £1.4bn off the firms’ combined stock market value.
Bank of America has cut its earnings forecasts for office landlords by 7% a year for the next 10 years.
