Barclays sees no signs of strong recovery in real estate deals
** Barclays says the European real estate market is yet to regain its footing after two years of crisis even though some groups in the sector saw improving property values in H1
** "We think a stabilisation in values is not necessarily obvious for now, as there is no evidence of strong recovery in the transactional market just yet," it says
** Though Barclays does not expect an economic recession in Europe, it points to signs of weaker occupational data that could impact companies, especially those with low rental income growth
** Debt refinancing may continue to affect net profits in the sector, it adds
** It sees real estate groups in the Nordics and Britain as best positioned for growth in Europe and raises Sweden-based Wihlborgs WIHL.ST to "equal weight" from "underweight"
RATING CHANGES:
COMPANY | RATING | OLD RATING | PT | OLD PT |
|---|---|---|---|---|
Covivio CVO.PA | Overweight | Underweight | EUR 61 | EUR 56 |
Hammerson HMSO.L | Equal weight | Overweight | 295p | 30p |
Safestore SAFE.L | Equal weight | Overweight | 885p | n/a |
Wihlborgs WIHL.ST | Equal weight | Underweight | SEK 110 | SEK 82 |
Reporting by Boleslaw Lasocki
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