Shares in UK property companies rose this morning after analysts Schroder Salomon Smith Barney (SSSB) became more positive on the sector.
Property analysts Alan Carter and Mike Prew moved SSSB’s stance on the sector to ‘overweight’ from ‘neutral’ in a morning note to clients.
They said direct property’s yield premium to bonds made a compelling value argument for the sector – providing rents do not collapse.
SSSB advised that the technology stock recovery priced into equity valuations should alleviate downward pressure on rents in the second half of 2002, paving the way for a commercial property repricing.
Carter and Prew said they would focus on “mispriced” stocks, upgrading Liberty International, Slough Estates and Hammerston.
Shares in Hammerson rose 12.5p to 458.5p this morning, while Slough Estates increased 8.5p to 323.5p
EGi News 14/01/02
