European Property: JP Morgan cautious going into 2020

Alstria Office REIT AG

16/01/2020 08:50

** JP Morgan says it takes a more cautious stance on
European property stocks going into 2020 as headwinds look to be
similar to 2019
    ** "We see February as a key month for the sector with 24
company results and a flurry of economic data points that will
go some way to setting the tone for the rest of the year," it
says
    ** It downgrades Unite  UTG.L , Big Yellow  BYG.L , PSP
 PSPN.S  and Shurgard  SHUR.BR  to "underweight" from "neutral"
on fears of overshooting share prices
    ** It sees Alstria Office  AOXG.DE  ("overweight") and
Vonovia  VNAn.DE  (resumed at "overweight") as top Continental
picks and raises Grand City Properties  GYC.DE  to "overweight"
from "neutral"
    ** In the UK, it sees London office facing REIT share prices
as stretched, preferring Grainger  GRI.L  ("overweight") and St.
Modwen  SMP.L  ("overweight") 
    ** It also says it continues to look very favourably towards
Spain's Merlin  MRL.MC  ("overweight") and Colonial  COL.MC 
("overweight") as well as Paris office markets, which investors
can play via Gecina  GFCP.PA  ("overweight")
    
    

 ((maria.sheahan@tr.com; elizaveta.gladun@tr.com))