Citi remains concerned about the de-leveraging that needs to occur. Management presented a confident outlook at the first half results but the broker is more worried about asset values falling faster, lowering collateral value and leading to more dilutive asset sales, or lenders applying higher debt costs.
During the first half the company did endure a debt downgrade and could face more if debt is not reduced, in the broker’s view, placing the dividend under pressure. The broker maintains a Sell rating and EUR125 target.
Sector: Real Estate.
Current Price is $10.04. Target price not assessed.