Barclays sees no signs of strong recovery in real estate deals

Covivio SA

04/10/2024 09:32

** Barclays says the European real estate market is yet to
regain its footing after two years of crisis even though some
groups in the sector saw improving property values in H1
    ** "We think a stabilisation in values is not necessarily
obvious for now, as there is no evidence of strong recovery in
the transactional market just yet," it says
    ** Though Barclays does not expect an economic recession in
Europe, it points to signs of weaker occupational data that
could impact companies, especially those with low rental income
growth
    ** Debt refinancing may continue to affect net profits in
the sector, it adds
    ** It sees real estate groups in the Nordics and Britain as
best positioned for growth in Europe and raises Sweden-based
Wihlborgs  WIHL.ST  to "equal weight" from "underweight"
    
RATING CHANGES:
 COMPANY     RATING        OLD RATING   PT         OLD PT
 Covivio     Overweight    Underweight  EUR 61     EUR 56
  CVO.PA                                           
 Hammerson   Equal weight  Overweight   295p       30p
  HMSO.L                                           
 Safestore   Equal weight  Overweight   885p       n/a
  SAFE.L                                           
 Wihlborgs   Equal weight  Underweight  SEK 110    SEK 82
  WIHL.ST                                          
 
 (Reporting by Boleslaw Lasocki)
 ((boleslaw.lasocki@thomsonreuters.com))