Mike Prew

Mike Prew

Mike Prew is managing director at Jefferies.

  • Climate change building

    Why offices need to think green


    As Morticia Addams, the fictional 1930s cartoon character from The New Yorker, observed: “Normal is an illusion. What is normal for the spider is chaos for the fly.” You can’t self-isolate against climate change and behind the three ‘Rs’ of reflation, reopening and reoccupation, buildings are going green — fast.

  • Investment

    Nuggets of value amid the chaos


    Elizabethan theatres were closed during the plague in 1592, so Shakespeare turned his quill to writing sonnets. The lesson is that people are adaptable, which can be seen in the way that the real estate industry is preparing for the post-pandemic world.

  • Life science lab

    Tail no longer wagging the dog


    Five years ago, we were stonewalled on our ‘sell retail’ theme, but after intu’s collapse and Hammerson’s £525m rights issue, it’s now a trade the shoeshine boy knows about.

  • City office skyline view

    This time REITs are well prepared


    “How did you go bankrupt?” “Two ways. Gradually and then suddenly” is a quote from Ernest Hemingway’s The Sun Also Rises.

  • Logistics warehouse

    This will be a short, sharp shock


    Economist John Maynard Keynes said: “When the facts change, I change my mind. What do you do, sir?” when he changed his mind in a debate.

  • London finance generic

    The latest twists in my sobriety


    So Brexit is oven ready, but what will it taste like? REITs rebounded 30% at the end of last year on the Conservatives’ election victory, twice the rise in the equity market. We issued our 2020 Outlook note memorandum ‘Re-selling the Dodo REITs’ and view the recent rebound in share ...

  • WeWork

    Feet of clay cannot keep walking


    REITs’ share prices rebounded 5% in a Brexit relief bounce as the receding risk of no deal drove up the value of sterling against the US dollar.

  • Westfield

    Stockholm syndrome for REITs?


    Are REITs suffering from Stockholm syndrome, the unusual bond that sometimes develops between hostages and their captors? REIT chief executives seem to be mesmerised by property valuations that aren’t the same as prices. Consequently, they risk buying shares back at the wrong prices and not selling their businesses at the ...

  • LDS_Hanover

    ‘Cinderella moment’ for industry


    The real estate market has had its ‘Cinderella moment’. Midnight has struck, exposing the REIT ‘pumpkin eaters’ left holding unsaleable assets at high valuations. Retail values cracked but REITs portrayed this as a one-off.

  • Bullring Birmingham

    Big bad wolf will blow REITs down


    REITs are like the fable of the three little pigs who built three houses of straw, sticks and bricks. The big bad wolf was only unable to destroy the house made of bricks. For straw, read shopping centres. For sticks, read offices. For bricks, read the alternatives of ‘beds (student ...

  • Investing Money

    Big REITs have much to fear from retail horror show


    Buying REIT shares is like breaking into a bank that’s already been robbed. The real estate market usually creates problems for REITs, but that could reverse in this cycle.

  • Chocolate

    ‘Forrest Gump’ asset management leaves you with too many soft-centre chocolates


    The good detective’s ABC mantra is ‘accept nothing, believe nobody, challenge everything’, but it seems REIT shareholders are overly reliant on appraisers’ asset valuations and audited accounts even as auditing standards have re-entered the spotlight.

  • Vanilla ice cream

    Enjoy the rest of your bubble – it’s going to burst soon


    ‘Black-box thinking’ is what the airline industry deploys to make flying safer and to reassure people it is the safest form of travel. Lessons learnt from past failures become industry-wide protocols.

  • REIT graph

    It’s time for a reality check — REITs are stuck in a rut


    In The Matrix, Neo is offered a red pill that, if swallowed, will transport him to the harsh “truth of reality”, ie the real world, or a blue pill, which would take him back to a fantasy world of comfort and denial.

  • London

    REITs face a new reality as foreign capital evaporates


    Festinger’s 1957 theory of cognitive dissonance notes that individuals seek consistency in their cognitions (beliefs) so they tend to twist facts to remove any conflict (dissonance). REITs now seem to be suffering from ‘valuation dissonance’ with low share prices and high portfolio valuations. But although they seem cheap, we don’t ...

  • Mike Prew is managing director and head of real estate at Jefferies

    Will REITs be all right? The future doesn’t look bright as values fall and caution rises


    Karl Marx said that history repeats itself “the first time as tragedy, the second as farce”.

  • Mike Prew is managing director and head of real estate at Jefferies

    It's 2007 all over again as REITs are forced into spotlight


    Groucho Marx once said: “I refuse to join any club that would have me as a member.”

  • Mike Prew is managing director and head of real estate at Jefferies

    Deflation upsets the balance of the real estate universe


    Ptolemy (2nd century AD) put the Earth at the centre of the universe until Copernicus (1473-1543) concluded the sun was at the centre.

  • Mike Prew is managing director and head of real estate at Jefferies

    The real estate cycle is broken: is the writing on the wall for REITs?


    In a speech to the French revolutionary assembly, Georges Danton (1759-1794) said: “De l’audace, encore de l’audace, et toujours de l’audace” - a forerunner of ‘Who Dares Wins’.

  • Mike Prew is managing director and head of real estate at Jefferies

    Is commercial property lacking rental-recovery leg?


    The ‘Grexit’ has been deferred - again, this time probably until December - but the recent pullback in share prices has lured strategic stake building in two quoted property companies.

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