Kepler sees Orpea scandal to impact Belgian property short-term, long-term 'still attractive'

Care Property Invest NV

09/02/2022 10:04

** Kepler Cheuvreux expects the newsflow on French senior
care home scandal  urn:newsml:reuters.com:*:nL8N2UF392 to continue to negatively impact
the Belgian property sector
    ** However it believes the medium- to long-term main drivers
remain unchanged, despite seeing heightened risk premium in the
short-term
    ** It says the results of the investigations mandated by
Orpea as well as the French government could provide short-term
relief in the case of positive conclusions
    ** "There is only limited risk of rent adjustments even if
profitability were to fall", it adds
    ** The broker cuts Care Property Invest  CPINV.BR  to "hold"
from "buy" to reflect "higher uncertainties", although it notes
the group has been less impacted by the allegations made against
France's Orpea  ORP.PA  and Korian  KORI.PA   urn:newsml:reuters.com:*:nL1N2U40VX
    ** It notes that Aedifica  AOO.BR  is "navigating through
the storm", deems Cofinimmo  COFB.BR  a "self-help story still
appealing", and keeps a "buy" rating for both
    ** Even though the scandal is currently contained to Belgium
and France, the broker doesn't rule out the possibility to see
it spread across Europe

 (Reporting by Olivier Cherfan)
 ((olivier.cherfan@thomsonreuters.com))