TSX:ERE.UN - Post by User
Post by
incomedreamer11on Jul 16, 2024 10:28am
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Post# 36134575
Analysts update
Analysts update In response to the completion of various strategic asset sales, including rental suite privatizations, for €129-mln in total gross proceeds, Raymond James analyst Brad Sturges raised his rating for European Residential REIT (ERE.UN-T) to “outperform” from “market perform” previously, emphasizing its strategic Dutch multi-family residential building divestiture activity is beginning to accelerate.
“We believe there is increasing potential that ERES could further narrow its NAV/unit discount valuation by: 1) executing more asset sales that allow ERES to further strengthen its balance sheet; and/or 2) revisit another en bloc Dutch MFR portfolio sales process at some point in the next 12-18 months, particularly if market conditions for private market Dutch MFR transactions further improve and if European interest rates fall, reducing the average cost of capital for prospective buyers,” he said.
Mr. Sturges’s target rose to $3.25 per unit from $2.75. The average is $3.06.