Jefferies sees improvement from European REITs by end-2024, ups Klépierre

Klepierre SA

15/04/2024 08:39

** Jefferies expects a positive performance by the end of
the year for European real estate investment trusts (REITs),
saying the fall in gross asset values is mostly priced in
    ** "Share prices currently imply an -18% decline in asset
portfolio values despite a double-digit decline already reported
in 2022-23," it says
    ** It expects the average total return of the stocks to turn
to a positive low single-digit level in 2024, and to a high
single-digit level by end-2025
    ** The broker says refinancing should not weigh on the
sector as companies reduced their net debt last year, with an
average upcoming debt of 380 mln euros ($405 mln) per company
    ** But it stays cautious as companies face difficulties due
to elevated leverage
    ** Jefferies upgrades Klépierre  LOIM.PA  to "buy" from
"hold", saying the French shopping centre operator benefits from
a lower leverage than peers 

($1 = 0.9384 euros)

 (Reporting by Mathias de Rozario)
 ((mathias.derozario@thomsonreuters.com))