REITs climb stock market

Property company shares enjoyed a strong day as the FTSE 100 hit its highest level in two months.

Morgan Stanley said while a deterioration of corporate earnings might hit rental demand, the main quoted property stocks remained strongly capitalised, well funded and with sufficiently good assets to keep attracting customers. The broker said real estate developers were in a “tactical sweet spot” between worsening corporate earnings and improved investor sentiment in the wake of last week’s European Union summit. British Land rose 1.7% to 519p, Land Securities, 1.6% to 750.5p and Hammerson closed up 1.6% at 450p.