Jefferies sees big 'bounce back' for European real estate, upgrades 11 stocks
07/01/2025 08:42
** Jefferies says listed real estate should return to more defensive
patterns after the cycle reached a trough in 2024
** It expects the sector to deliver a 20-25% total shareholder return
in 2025, although Europe's economic landscape remains challenging
** "We enter 2025 with the highest level of optimism in several years,
driven by FFO and NAV growth which points towards double-digit capital
returns supported by mid-single-digit dividend yield," it says
** Jefferies also expects M&A to continue and most likely accelerate in
the "over-crowded" sector where it makes sense to reduce management and
financial costs and to take advantage of some cases of mispricing
** Among the 2025 sector drivers, it flags an end to the derating of
logistics names, potential outperformance of European retail REITs and
residential markets, as well as continued activity in data centres
** It upgrades 11 stocks in its coverage, with no downgrades
COMPANY RATING OLD RATING PT OLD PT
Vonovia VNAn.DE Hold Underperform €29.00 €23.00
Unibail-Rodamco-Westfield URW.PA Buy Hold €92.00 €73.00
LEG Immobilien LEGn.DE Buy Hold €98.00 €84.00
Merlin Properties MRL.MC Buy Hold €12.00 €9.80
Aedifica AOO.BR Buy Hold €68.00 €59.00
Mercialys MERY.PA Buy Hold €13.00 €12.50
WDP WDPP.BR Hold Underperform €20.50 €21.00
Grand City GYC.DE Hold Underperform €12.00 €8.40
Montea MONTE.BR Buy Hold €79.00 €84.00
Shurgard Self Storage SHUR.BR Hold Underperform €37.00 €35.00
VGP VGP1.BR Buy Hold €91.00 €102.00
(Reporting by Marta Serafinko in Gdansk)
((Marta.Serafinko@thomsonreuters.com; +48 58 769 66 00;))