JPM sees lower debt costs for European property, ups URW to 'neutral'

Unibail-Rodamco-Westfield SE

27/06/2024 10:45

** J.P.Morgan says European property firms' debt costs are
easing, nearing the YTD low seen in January, as it upgrades mall
operator Unibail Rodamco Westfield  URW.PA  to "neutral" from
"underweight"
    ** "URW's marginal debt cost – as proxied by listed bonds –
continues to come down," JPM says
    ** It says political uncertainty weighs on the sentiment in
France, but notes URW's stock has underperformed vs other French
listed companies more exposed to the real estate sector
    ** It also has a "relatively upbeat" view on U.S. malls,
URW's second biggest mall exposure behind France
    ** JPM also hikes Vonovia's  VNAn.DE  ("overweight") PT by
6.2% to 34 euros
    ** "While the yield to maturity on Vonovia's debt has moved
up, the average cost of debt that Vonovia is paying is moving up
considerably slower," it says
    ** Debt costs are also down at Finnish residential real
estate company Kojamo  KOJAMO.HE  ("overweight"), JPM adds

($1 = 0.9353 euros)

 (Reporting by Gianluca Lo Nostro)
 ((gianluca.lonostro@thomsonreuters.com))