EU REAL ESTATE: Akelius Residential: 9M update (AKFAST; NR/BBB-/NR)
Neutral.
• Rental Income EUR 277m +5.2% lfl
• Vacancy fell from 4.9% to 3.5%. 1.8% ex-renovations.
• Portfolio value fell due to EURUSD EURCAD strength. EUR 5,657m down from EUR 5,992m.
• Reported LTV 39%. BoD has loosened financial policy to permit LTV of 40% from 35% previously. It was in the low 40s in 2023 so this isn't a major concern.
• The company has a large amount of rent-controlled assets so tenant churn tends to be low and occupancy high.
• Has not borrowed in the bond markets since 2021. Loan refinancing has raised average interest cost to 1.81% from 1.15% but this is still very low. Debt term 3.4yrs from 2.7yrs at year end.
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GREECE T-BILL AUCTION RESULTS: 26-Week GTB
| Type | 26-week GTB |
| Maturity | Mar 27, 2027 |
| Amount | E500mln |
| Target | E500mln |
| Previous | E500mln |
| Avg yield | 1.80% |
| Previous | 1.74% |
| Bid-to-cover | 1.90x |
| Previous | 1.84x |
| Previous date | Aug 20, 2025 |
GILT AUCTION RESULTS: 4.375% Mar-30 Gilt React: Weaker Than Previous Re-openings
Slightly weaker 4.375% Mar-30 Gilt sale than recent re-openings. The 0.4bp tail was a little wider than the 0.1-0.2bps seen between June and August, but in line with May’s re-opening.
- The 2.80x bid-to-cover ratio was the lowest on record for this line, and below the 3.19x average for the prior four re-openings.
- The lowest accepted price was 101.109, a shade below the 101.100 pre-auction mid. The secondary price of the Gilt has fallen a touch since the results were published, to 101.086.
ITALY AUCTION RESULTS: BTP Short Term / BTPei Results
| 2.10% Aug-27 BTP Short Term | 1.10% Aug-31 BTPei | 2.40% May-39 BTPei | |
| ISIN | IT0005657330 | IT0005657348 | IT0005547812 |
| Amount | E2.5bln | E1.25bln | E1.25bln |
| Previous | E3bln | E1.5bln | E1.25bln |
| Avg yield | 2.23% | 1.17% | 2.13% |
| Previous | 2.20% | 1.13% | 1.97% |
| Bid-to-cover | 1.57x | 1.67x | 1.67x |
| Previous | 1.56x | 1.51x | 1.45x |
| Avg Price | 99.78 | 99.60 | 103.33 |
| Pre-auction mid | 99.753 | 99.514 | 103.199 |
| Prev avg price | 99.82 | 99.83 | 105.52 |
| Prev mid-price | 99.801 | 99.739 | 105.447 |
| Previous date | 26-Aug-25 | 24-Jul-25 | 25-Sep-24 |
