UK real estate firms face a “precarious” situation in the near to-medium term as net asset values fall and refinancing risks loom, according to analysts at HSBC, who downgraded 11 firms in the sector.
Analysts led by Stephen Bramley-Jackson cut all UK real estate stocks they cover to either hold or reduce, leaving no buy ratings in the sector. Commercial property company British Land Co. and real estate investment trust Land Securities Group Plc were double downgraded to reduce from buy, while shopping center operator Hammerson Plc was cut to the sell-equivalent rating from hold.
