Inflation and AI in focus for 2026 for European real estate stocks, GS says

Great Portland Estates

04/12/2025 12:54

** Goldman Sachs says inflation and demand from AI firms will be the key themes for European real estate stocks in 2026, as the industry exits a year of high stock dispersion and high yield outperforming the rest of the sector

** "Our coverage still trades at crisis-era valuations," the broker says

** Goldman Sachs ups "attractively priced" Gecina GFCP.PA to "buy" from "neutral", citing its resilient operational trends, looking ahead to an attractive 7.2% dividend yield and share buybacks in 2026

** The broker adds that accelerated asset rotation into share buybacks could provide further upside for Gecina, viewing this as a key strategic action for the sector

** GS downgrades both Great Portland Estates GPEG.L and Grand City Properties GYC.DE to "neutral" from "buy," citing expected lower shareholder payouts for the former and limited post-outperformance upside for the latter

(Reporting by Dimitri Rhodes)

((Dimitri.Rhodes@thomsonreuters.com;))