Not al-REIT
STOXX 600 falls 1%
Bitcoin nears $90K
Germany set for Feb. 23 election
Bayer slumps after results
U.S. share futures tick lower
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
NOT AL-REIT
Jefferies have a big note out this morning taking a swing at London-listed REITs, in which they downgrade target prices by 7% on average as they shift their stock picking metrics to EBITDAs from NAVs.
"REITs' cost of capital has risen from 8.1% to 10% ytd, but real estate returns are 3%, weighed down by offices, so portfolios aren't earning their keep," say analysts at the bank led by Mike Prew.
They have shifted their metrics away from net asset values which they see as unreliable as investment trading volumes are at their weakest they've ever been. Instead they prefer EBITDA referenced to rent margins and net debt.
Among the their recommendation shifts, they downgrade Big Yellow Group BYG.L and PRS REIT PRSR.L to hold (from buy), but upgrade Land Securities Group LAND.L to hold (from underperform).
(Alun John)
*****
EARLIER LIVE MARKETS POSTS:
US CAPEX GROWTH TO REBOUND IN 2025 ON AI BOOST, FALLING INTEREST RATES- GOLDMAN CLICK HERE
TIME TO TURN LESS BEARISH ON AUTOS? CLICK HERE
LOTS OF RESULTS, INVESTORS AREN'T IMPRESSED CLICK HERE
EUROPE BEFORE THE BELL - HOLD ON TIGHT CLICK HERE
BITCOIN SPARKLES AS TRUMP TRADES ROLL ON CLICK HERE
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
