EU REAL ESTATE: Property: Week in Review

Higher beta names had significant moves +/- 8bps. The more generic IG space was within a -2/+4 range.

• Lineage issued its inaugural € bond. The cold storage warehouse company only has one other $ bond. The company has a limited track record as it was only IPO’d last year. Both Moody’s and Fitch have negative outlooks. Investors wanted a sizeable discount, and the bonds came ms+175 compared to the $ 30s at €z+135 equivalent. LINE 31 was -5bps tighter in secondary.
• Hammerson took control of the 50% of The Oracle that they did not own for £104.5m. They also issued a reasonably upbeat note on recent leasing and footfall performance. The company expects leverage to fall to ~8x by YE26 which is still above the Moody’s threshold of <7x for an upgrade.
• Nepi Rockcastle had a solid 9M update. The recent acquisitions in Poland led to a sizeable +9% growth in average basket spend.
• Sirius also had a strong H1 with like-for-like rent +5.2%. The company remains acquisitive but with LTV close to management’s upper limit, we would expect some equity issuance. It last raised equity in July 2024.