The 10 jewels by dividend among the largest real estate giants in Europe

The end of the year is approaching and it is time to renew the bets in the sector of the great European real estate giants. It is time to look for new winning horses or, on the contrary, continue betting on the values ​​that are doing best in 2021 in which European REITs -the equivalent of Spanish REITs- are offering very significant returns to investors.

In a sector that is up an average of 10% so far this year, valuations are demanding. Therefore, investors are required to select very well. One of the best yardsticks is dividend yield. And more specifically, the expected one for the year 2022. Who are the most generous companies with their shareholders and what do they do?

-Mercialys. The average of the analysts assigns to the French company specializing in shopping centers an expected dividend yield of more than 9% next year. The group was forced to cut the 2020 dividend due to covid-19. But his plans are to recover cruising speed very soon. In addition, it is one of the 10 best large REITs of the year in the stock market, with an increase of around 25%.

-Eurocommercial Properties. He owns and manages commercial real estate with a portfolio of around €4 billion that includes 26 top quality assets in Italy, France, Sweden and Belgium. It also accumulates a large appreciation of 25% this year in the stock market and experts expect a dividend yield between 8.5% and 9% in 2022.

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-Klepierre, Carmila and BMO. The French Socimi, with a market value of around 5,500 million euros, is the owner of many of the commercial establishments that house large firms such as Inditex, H&M and Sephora. Like the also French Carmila or the British BMO Commercial Property, the trio of companies would be in a position to offer their shareholders between 8.2% and 8.7% next year.

-Retail Estates and NSI. The two Central European companies form the duo that is in a position to offer its shareholders dividend yields of around 7%. The Belgian Retail Estates invests mainly in commercial properties located on the periphery of residential areas or on access roads to urban centers. NSI is a medium-sized company in the Netherlands with a portfolio of more than 60 office buildings that distributes at least 75% of its profit in cash.

-Icade, Civitas, Befimmo. They form the group of REITs that report returns between 6% and 6.5%, according to market consensus. With a market value of more than 5,000 million euros and a portfolio of more than 15,000 million, Icade has as a strategic priority the reduction of carbon emissions in its investment projects in offices, health, and housing development.

For its part, the British company Civitas rents residences on a long-term lease basis. After saving the health crisis with note, the company has raised its dividend target by almost 3%. Finally, Befimmo concentrates its portfolio of offices and 'coworking spaces in Brussels', the main Belgian cities and the Grand Duchy of Luxembourg. It will distribute at least 80% of this year's result, a payment that could be complemented with the realized capital gains generated by its asset rotation policy.