Barclays says Entra is 'the only way' to tap into Oslo offices, ups to 'overweight'

Fastighets AB Balder

23/02/2022 11:03

** Barclays upgrades Norwegian real estate company Entra
 ENTRA.OL  to "overweight" from "equal weight" and raises its
target price by 4.4% to NOK 235, citing attractive valuation
post sell-off and relatively strong forecast for total
accounting returns (TARs)
     ** Entra, a major landlord in Oslo, is the only way to gain
exposure to Norwegian offices in the listed market, the broker
says, flagging a buoyant outlook for Oslo offices
    ** "The Oslo market has recovered post-COVID at a faster
rate than other markets and we see potential for continued
market rental growth in excess of inflation," Barclays says
    ** Liquidity is low, the broker says, but this may change
should either or both of the major shareholders - Balder
 BALDb.ST  and Castellum  CAST.ST  - buy a majority of the
shares 
    ** According to the brokerage, Entra offers an "attractive
proposition" with highest income returns of any
capital-city-focused office landlord and decent TARs which the
broker expects to rise by 160bps to 9.5% in 2022-2025
    ** Out of six analysts that cover the Entra stock, two rate
it "buy" and four "hold" 
    

 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com))