Morgan Stanley | As we indicated in our last real estate strategy report, this has been the worst sector in Europe in 2Q19 (oversold and with a relative performance of 3.5sd below its 12MA). This has been mainly motivated by concerns about the proposal to freeze rental prices in the city of Berlin (and its possible spread to other cities in the country) as well as the uncertainty regarding Brexit.
Banc Sabadell | The Spanish economy faces the second half of 2019 growing at relatively high rates (we expect 2.3% yoy in 2019 vs 1.0% for the Eurozone) but with a less favourable composition of growth.
BancaMarch | The amount of mortgages conceded in March rose +23.2% yoy, which implies a slowdown compared to the +31.2% registered in February.
Sabadell | Neinor 8 April´s profit warning was undoubtedly a bucket of cold water, not just because it was unexpected (the consensus expected a lowering of targets), but also because of the scale of the cut (-50% of the Ebitda accumulated in 2019 and 2020). In this note we downgrade our objective price 13% to 13.86 euros/share because of the delay in the delivery plan and because of more conservative profitability hypotheses in the long term. Despite the cut in our O.P. we continue to see value in the share and maintain or recommendation of BUY.
Bankinter | The company announced in its shareholders´ general assembly yesterday that it would be considering creating a Socimi in Portigal that would be consituted before the end of the year.
Bankinter | The sale of houses in Spain fell in January (-0.2% yoy). It is the first drop in the last 11 months and shows a slowdown (from +3.8% in December, +2.8% in November, +15% in October). It is the third time in three years the rate has been negative.
After three years of negotiations with Cuban authorities, Spanish real estate Urbas has agreed to create a joint venture with CubaGolf, a company that depends on the Cuban Tourism Ministry, to build a tourism and residential complex in the Pasacaballos, to the south of the city of Cienfuegos, with a total investment of around 3.5 billion euros. The company is a classic among the small caps of the Spanish market. Year 2018 was the worst for Urbas since 2008 financial crisis outbreak.
House sales have been posting double-digit figures for the past three years, there is strong growth in construction and prices are clearly on the up. What will the future bring? As explained in the next report from Caixabank Research, this positive trend is expected to continue in the sector, both because of the Spanish economy’s good performance and also the healthy state of the industry itself.
