European real estate stocks soar as Fed signals policy pivot

Sagax AB

14/12/2023 09:07

** Shares in European real estate companies jump after the
U.S. Federal Reserve flagged a likely end to its tightening
cycle and signalled reduced borrowing costs are coming next year
    ** The pan-European STOXX 600 real estate index  .SX86P 
rises 5.4% to 10-month highs, leading sectoral gains
    ** Baader Bank analyst Andre Remke says the dovish Fed
statements likely ease concerns on refinancing tasks and the
magnitude of higher financing costs in the sector
    ** "This would also lead to a higher and more attractive gap
between property yields and alternative investments again and
ease concerns on further material portfolio write-downs," says
Remke
    ** Germany's Aroundtown  AT1.DE , Vonovia  VNAn.DE  and TAG
Immobilien  TEGG.DE  are up 5-9%
    ** Shares in Sweden's rate-sensitive property companies SBB
 SBBb.ST , Fabege  FABG.ST , Balder  BALDb.ST  and Sagax
 SAGAa.ST  jump 8-11% 
    ** Swedish inflation also dropped faster than expected in
November, data showed on Thursday
    

 (Reporting by Greta Rosen Fondahn and Marleen Käsebier)
 ((greta.rosenfondahn@thomsonreuters.com;
marleen.kaesebier@thomsonreuters.com))