Starting yield more important than earnings growth in real estate, Barclays says
11/06/2025 12:30
** Among European real estate names, "starting yield is more important than earnings growth in today's market," Barclays says ** It points out investors require an earnings yield of around 5% plus growth ** The broker upgrades Finnish residential real estate group Kojamo KOJAS.HE to "overweight" from "underweight" seeing earnings trough closer, yield closer to the true cash flow yield, and refinancing less of a headwind ** It raises Irish Residential Properties REIT (IRES)IRES.I to "overweight" from "equal-weight" citing asymmetric upside potential from possible regulatory changes and attractive earnings yield ** Barclays cuts UK's private rental homes company Grainger GRI.L to "equal-weight" from "overweight", noting low starting earnings yield, cost of debt being above portfolio yield and a lower growth profile (Reporting by Marta Frąckowiak) ((marta.frackowiak@thomsonreuters.com))