The Euro PIN Fund, our fictional fund that consists of 10 property-related companies based in countries that use the euro, managed to reverse the Q3 2021 loss of 1.1% by returning 1.2% in
Q4 (November 2021 to January 2022). However, even this small gain was erased by an ever appreciating sterling, which grew from €1.18 to the pound to €1.20, an increase of 1.7% in the past three months.

The euro has now depreciated by 8.1% against sterling (from €1.11) since we started this Euro PIN Fund 18 months ago. Despite this however, the Fund has still returned 27% (in sterling) during that time, which is the equivalent of 18% per year.

However, a whopping 35% of these profits are attributable to just one company, and yet again this quarter the Netherlands-based Eurocommercial was the star performer, returning 7.5% in the past three months. Had you bought the share at the end of July 2020 you would have almost doubled your money (+94.7%) in sterling but if you plan on keeping the shares, your return so far in euros would be almost 111% in 18 months.

The company, which has a portfolio of 25 shopping centres in Belgium, France, Italy and Sweden, reported a continuation of the strong recovery in retail sales in its Q3 report in November. It added that overall retail sales were up 6.5% on a year earlier and that they have now fully recovered to their pre-pandemic levels and were 1.5% above Q3 2019.

Strong tenant demand resulted in 5.4% rental uplifts on renewals and re-lettings, with 271 deals signed during the 12-month period ending 30 September 2021. All countries showed positive rental increases, with Italy (6.9%) and Sweden (5.6%) being the most prominent.