Barclays adjusts European real estate ratings based on valuation review

Shurgard Self Storage

24/08/2026 11:14

** Barclays says European real estate offers defensive growth supported by contracted rents, organic growth and resilient cash flows, as it revamps its valuations for the sector
** The broker shifts its valuation focus towards cash generation rather than property valuations, with rating changes reflecting a preference for companies with stronger cash flow growth and income prospects
** Based on this, it upgrades Safestore SAFE.L to "overweight" and Segro SGRO.L to "equal weight"
** It downgrades Big Yellow BYG.L, Shurgard SHUR.BR and Unite Group UTG.L to "underweight", citing concerns over their growth and operating outlooks
** It also cuts Swiss Prime Site SPSN.S and Merlin Properties MRL.MC to "equal weight", saying their defensive qualities are already reflected in stock valuations
     
COMPANY
RATING
OLD RATING
PT
OLD PT
Safestore
Overweight
Equal weight
670p
870p
Segro
Equal weight
Underweight
970p
625p
Swiss Prime Site
Equal weight
Overweight
CHF 125
CHF 160
Merlin Properties
Equal weight
Overweight
€14.70
€15.50
Big Yellow
Underweight
Overweight
820p
1200p
Shurgard
Underweight
Equal weight
€22
€33
Unite Group
Underweight
Equal weight
460p
520p
     

(Reporting by Kira Britten)
((Kira.Britten@thomsonreuters.com))