German office: Jefferies banks on prime in 'office of the future'

Alstria Office REIT AG

12/02/2021 07:52

** Jefferies says it expects prime office property companies
to do much better than secondary, as they should benefit from
the new requirements for future office space in a post-Covid
world
    ** The broker says a hybrid model of office/remote work will
be the future of the office
    ** "Future office space will have more functionality, which
is why space per employee might even increase, supporting our
thesis of 'smaller space and higher rents'", Jefferies adds
    ** The broker says its top pick is Austria's CA Immobilien
 CAIV.VI , citing the company's special situation on the German
market, given the value upside of its land bank and the M&A 
focus; reiterates "buy" rating
    ** It downgrades Aroundtown  AT1.DE  to "hold" from "buy",
saying the COVID-19 vaccine hope is now fully priced in the
company's valuation, and the ongoing lockdown may weigh on
results
    ** Jefferies reiterates "hold" rating for Alstria Office
REIT  AOXG.DE , saying the company CEO sees limited risk for
collection rates but is more concerned on letting markets
    ** Aroundtown shares are down 2.7% in early Frankfurt trade


 ((bartosz.dabrowski@tr.com))