ING 'more cautious' on Benelux real estate yields and growth

Cofinimmo SA

12/01/2023 11:56

** ING takes a "more cautious" stance on Benelux real estate
companies' yields and growth as it adjusts estimates for the
sector
    ** The brokerage expects growth to slow down as the focus
"shifts from quantity, dimension and speed to quality,
profitability and balance sheet"
    ** "The high rates environment has driven a new awareness of
debt, setting lower standards," it adds
    ** CTP  CTPNV.AS , Aedifica  AOO.BR  and Wereldhave
 WEHA.AS  have a medium share issuance risk, ING says, while
Montea  MONTE.BR , WDP  WDPP.BR  and NSI  NSTEc.AS  are among
the safest companies for indebtedness
    ** Cofinimmo  COFB.BR , which ING downgrades to "hold" from
"buy", and Xior  XIOR.BR  have higher costs for refinancing, it
says
    ** For Cofinimmo, the brokerage lowers 2023 and 2024 EPS
estimates by 8% and 10%, respectively, and forecasts 2023 EPRA
earnings of EUR 224.7 mln ($241.4 mln)
    ** Although the group's ongoing disposal programme might
help it to keep debt under control, the current 46% debt ratio
is "too stretched", ING says
    ** Shares of Cofinimmo fell as much as 6.8% in early trading
before paring losses to trade 1% down at 1117 GMT
($1 = 0.9308 euros)
 (Reporting by Juliette Portala)
 ((juliette.portala@tr.com))