January 24, 2025 13:16 GMT
REAL ESTATE: Week in Review
REAL ESTATE
On average, Property was close to 1bp tighter with a generally positive tone despite the 10yr Bund selling off 4bps and year-end ECB rate expectations moving 12bps higher. Most of the movers were small issuers.
- We highlighted here how IWGLN and PUPRIN bonds are worth looking at given how wide they trade relative to the sector. PUPRIN has an extremely strong list of tenants drawn from the Norwegian public sector. IWGLN – ex-leases which are remote – has low leverage of 1.4x and is guiding towards 1.0x in the near future. One small note of caution was from Workspace WKPLN which had a challenging last quarter; it competes with IWGLN in the UK. International Workplace Group has much great geographic reach. WKPLN is London focused.
- Stoneweg brought their inaugural € 6yr since taking over the Cromwell REIT. CERTSP 31s priced ms+195 and rallied 7bps having received a nearly 5x book. UOP includes the Make-Whole call of the CERTSP 2.125 25 (Probably at PAR) which we expect will happen very shortly after 30th Jan new issue settlement.
- Vicinity issued a 7yr AUD this week well inside where € 29s trade... see note. This gives holders protection against issuance risk. VCXAU is A2/A but trades wide to BBB names such as Unibail and Klepierre and also to compatriot SCentre. JPM wrote a positive note recently on the Australian retail environment.
- Prologis reported a strong Q4 with a record for new leases signed. Debt/Equity came in at 4.6x (0.2x lower) with a Moody’s upgrade possible at 4x. Management noted that activity particularly picked up post-election and was now “nearing an inflection point”.

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