Exane names top European real estate picks as sector starts 2023 at discount

Shurgard Self Storage

23/01/2023 12:00

** Exane BNP Paribas says the European real estate sector
starts 2023 at a substantial discount to its net tangible asset
forecasts, after the sector lost over 40% of its market cap in
2022
    ** "Part of the discount that the sector trades on reflects
refinancing risk," the broker says, as around 10% of debt books
per year are due in the next two years
    ** It adds successful refinancing would be a key re-rating
catalyst for the sector
    ** The brokerage's "top buys" are Vonovia  VNAn.DE  on
overstated refinancing risk and low valuation, and
Unibail-Rodamco-Westfield (URW)  URW.AS  which it upgrades to
"outperform" on attractive cashflow and U.S. disposals
    ** It also raises Colonial  COL.MC  and Icade  ICAD.PA  to
"outperform" from "neutral"
    ** It cuts Shurgard Self Storage  SHUR.BR  to "underperform"
from "neutral" and Aroundtown  AT1.DE  to "underperform" from
"outperform"
    ** URW is up 3.5% in midday trade, while Icade rises 2.5%
and Vonovia 2%
 (Reporting by Anastasiia Kozlova)
 ((Anastasiia.Kozlova@thomsonreuters.com))