European property stocks look set to produce a total return of 10% this year, according to a new report from JP Morgan.
The broker has issued a new note on the listed property sector, saying it expects real estate shares to produce a 5.5% share price return until December 2010.
Analyst Harm Meijer said: “The listed sector is not a strong buy, nor a strong sell, but offers a solid 12-month total return of 10% and stocks with different investment themes: alstria (best positioned for sovereign credit risk), Big Yellow (preferred recovery play), British Land (very predictable cash flow and acquisition power) and VastNed Retail (8% dividend yield).”
JP Morgan also listed 10 “must-know” facts about listed real estate for 2010.
Its top tip is that European stocks are still 55% below their 2007 peak (
For more on the JP Morgan note and the full list of 10 “must-know” facts, see the property finance blog.
nathan.cross@estatesgazette.com
