European real estate: SocGen sees uncertain earnings for retail, slight growth for offices

Shurgard Self Storage

31/01/2022 13:11

** Societe Generale says that among real estate companies
set to report FY results in February, earnings of retail stocks
are uncertain while office market stocks may report growth
    ** For retail, SocGen says the range of plausible recurring
earnings per share (EPS) and net asset value (NAV) estimates are
"fairly wide", as comparisons with the last three half-year
periods are complicated by pandemic restrictions and accounting
provisions
    ** Recent NAV estimate cuts for Unibail Rodamco  URW.AS  and
Klepierre  LOIM.PA  implied by a Bloomberg consensus sets the
bar low, according to the brokerage
    ** For offices, NAV should be slightly stronger especially
for higher quality portfolios, it notes
    ** SocGen expects alternatives like storage and healthcare
to keep increasing earnings, with NAV growing stronger for
Belgian Shurgard  SHUR.BR  compared with Aedifica  AOO.BR  and
Cofinimmo  COFB.BR 
    ** The brokerage cuts France's Klepierre to "sell" from
"hold" and Carmila  CARM.PA  to "hold" from "buy", citing their
recent share price outperformance
    

 (Reporting by Kate Entringer)
 ((kate.entringer@thomsonreuters.com))