Morgan Stanley | Our analyst Bart Gysens continues to see attractive risk/return in EU real estate, although he prefers to focus on idiosyncratic stocks while awaiting a turnaround in bond yields. In the logistics sector, which is under greater pressure, he believes we have already passed the peak of deterioration in sentiment and demand, with CTP being his top recommendation. In terms of relative value, he prefers office stocks in London, and some in Paris (such as British Land, GPE, Colonial) over PSP, Unibail over Klepierre, Vonovia over LEG, and Shurgard/Big Yellow over Safestore. He believes that investors should not oppose the trend towards data centres, even if valuations appear high, maintaining EqualWeight for Merlin Properties.
Investors should not resist data centre trend, even if valuations appear high; EW maintained for Merlin Properties
