British Real Estate Trusts Raised by Credit Suisse on Outlook

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.''

To contact the reporter on this story: Simon Packard in London at packard@bloomberg.net

To contact the editor responsible for this story: Rob Urban at robprag@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.