The Stoxx Europe 600 Real Estate is currently in a head-to-head race with retailers for the weakest sector of the year.
Amid rising interest rates and hard times for consumers, German real estate values are cheap for good reason, explained Barclays expert Sander Bunck. He dropped his recommendation (overweight) for Vonovia, but turned his vote for TAG Immobilien by two notches to “overweight” after the capital increase. The latter have recently lagged behind their peers in the industry, but offer an attractive return on earnings.
Meanwhile, JPMorgan’s Neil Green braced for a potentially prolonged drought for the industry. With a view to German values, however, he gave up his negative rating for Aroundtown. Goldman Sachs expert Jonathan Kownator, on the other hand, canceled his Aroundtown buy recommendation. Both experts are now meeting at “Neutral”.
Kownator is particularly critical of British real estate values. On the other hand, he recommends Grand City after its recent clearly below-average development and now attractive dividend yield and valuation.
In XETRA trading, the Vonovia share temporarily fell by 1.56 percent to EUR 23.94, while the TAG Immobilien share climbed 0.83 percent to EUR 8.49. Meanwhile, the Aroundtown share lost 4.42 percent to 2.53 euros. The Grand City Properties share is down 0.66 percent to EUR 10.55.
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Image sources: Vonovia SE, Aroundtown SA
