European real estate: GS picks residential over retail landlords

Mercialys SA

01/09/2020 08:14

** In a note on European real estate, Goldman Sachs says it
expects residential and logistics landlords, such as Vonovia
 VNAn.DE , LEG Immobilien  LEGn.DE , Grand City Immobilien
 GYC.DE , and Segro  SGRO.L  to continue outperforming, as
structural tailwinds accelerate 
    ** It adds retail landlords, including URW  URW.AS ,
Klepierre  LOIM.PA , Eurocommercial  SIPFc.AS , and Citycon
 CTY1S.HE  should face increasing difficulties, as negotiations
with retailers progress
    ** GS downgrades Deutsche Wohnen  DWNG.DE  to "sell" from
"neutral", following the company's stock outperformance, and
seeing regulatory risks in Berlin
    ** The broker upgrades Mercialys  MERY.PA  to "neutral" from
"sell", as the company benefits from higher exposure than peers
to convenience and food retail
    ** It cuts Aroundtown  AT1.DE  to "neutral" from "buy",
citing weaker guidance than expected, and some concerns about
the company's hotel exposure

 ((bartosz.dabrowski@tr.com))