GS cautious on London, Nordic real estate - cuts PT for SBB further
12/06/2023 10:44
** Goldman Sachs forecasts further property value declines
from Q1 for its European real estate coverage, and expects
growth to be "relatively scarce" over the next few years
** The brokerage says real rates both in the U.S. and Europe
have plateaued since October 2022, but debt financing remains a
headwind
** The broker is increasingly cautious on the Central London
Office market, due to low deal activity and a spike in new
supply -- cuts GPE GPEG.L to "sell" from "neutral", and SEGRO
SGRO.L to "neutral" from "buy"
** It sees value opportunity in European retail, where it
upgrades URW URW.PA to "buy" from "neutral"
** GS remains cautious on Nordic firms, where it notes
higher leverage and shorter debt maturities, and reiterates sell
ratings for Entra ENTRA.OL , Fabege FABG.ST , Kojamo
KOJAMO.HE and SBB SBBb.ST
** "We believe refinancings are likely to remain expensive
and/or complicated to source with limited access to bond
markets," it adds about the region
** GS cuts its target price for SBB by 20% to SEK 4, having
halved it in May, and for Entra by 19% to NOK 79
(Reporting by Greta Rosen Fondahn)
((Greta.RosenFondahn@thomsonreuters.com))