Barclays sees cheap debt helping Swiss real estate earnings
13/09/2024 11:57
** Barclays starts Swiss real estate companies PSP Swiss
Property PSPN.S with "overweight" and Swiss Prime Site
SPSN.S with "equal weight", saying cheap debt in Switzerland
should help earnings
** The broker believes the low cost of debt in Switzerland
is advantageous, as earnings are likely to encounter a
relatively small headwind on refinancing compared with other
markets
** "We find the Swiss companies' earnings would be impacted
less than the average for our European office-exposed coverage,
assuming a resetting of all finance expenses," Barclays says
** The brokerage is positive on Swiss commercial real estate
(CRE) market fundamentals and marginally prefers PSP to SPS
thanks to its better located portfolio with a higher earnings
yield and lower leverage
** The brokerage notes PSP has well located assets and its
lower leverage allows it to focus on external growth
opportunities, which should emerge in the coming quarters
(Reporting by Amir Orusov)
((Amir.orusov@thomsonreuters.com))