FRANKFURT (dpa-AFX) - Shares of Grand City Properties fell to their lowest level since April 2024 on Tuesday. In the current year, they are down 12 percent.
In an analysis of the real estate industry, Bank of America expert Marc Mozzi lowered his thumb on the shares to "Underperform" and cut his price target to 11.50 euros. However, at currently 10.34 euros, the shares on Xetra are already trading significantly lower.
Mozzi criticizes Grand City's high liabilities and expensive hybrid bonds and sees a risk of a 30 percent dividend cut. Overall, however, real estate investment trusts (REITs) are cheaper than they have been in 20 years, and financing conditions are improving.
His and his colleagues' favorite is the Spanish Merlin Properties./ag/jha/