U.K. real estate shares were upgraded to ``market weight'' from ``underweight'' by analysts at Credit Suisse, who said their earnings risk is ``very low compared with the rest of the market.''
The FTSE All Share Real Estate Index's 43 percent decline since the start of 2007 shows investors anticipate the value of the companies' properties may fall an additional 25 percent, said Steve Bramley-Jackson, Robert Stassen and Vishal Lakhani in the note to investors.
While U.K. real estate stock prices reflect ``very low'' earnings risk, in the broader stock market ``there are substantial pending earnings revisions and therefore valuation risk,'' the analysts wrote. ``Stability in real estate shares is approaching,'' they added.
British Land Co. Plc and Brixton Plc were raised to ``outperform'' from ``neutral,'' by the analysts, who downgraded Liberty International Plc to ``underperform'' from ``neutral'' and Hammerson Plc to ``neutral'' from ``outperform.''
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