'Buy the sector again': Exane BNP turns positive on logistics real estate

VGP NV

19/07/2023 10:51

** The time to buy the logistics real estate sector again is
now, Exane PNB Paribas says, as values have largely reset and
there is an increasing value in development pipelines
    ** It sees little downside from current valuation levels,
and says the sector will develop solid earnings growth, despite
the macro trying to dampen proceedings: "the picture looking
forward is brighter", says the broker 
    ** Exane double upgrades SEGRO  SGRO.L  to "outperform" from
"underperfom", WDP  WDPP.BR  to "neutral" from "underperform", 
    ** It initiates Tritax  BBOXT.L  and CTP  CTPNV.AS  at
"outperform, and VGP  VGP1.BR  with "underperform"
    ** For Tritax it sees catalysts coming from the UK reaching
peak yields quicker than Europe alongside solid reversion
capture, while CTP is poised to deliver best-in-class pipeline
profitability
    ** It views VGP's valuation as rich, with weaker long-term
earnings growth as the rising cost of debt hits funds from
operations growth
   

 (Reporting by Elizaveta Gladun)
 ((elizaveta.gladun@thomsonreuters.com))