Despite near-record investment levels, 2007 is likely to be remembered for the subprime crisis, the sharp downturn in debt markets, and the first signs of risk reassessment in the markets during the second half of the year. The capital markets' and investors' perception of financial risk and the real estate sector have dramatically changed in recent quarters. This has precipitated dramatic falls in most of the listed real estate companies' share prices, from a high premium on net asset value (NAV) in March 2006 to a significant discount recently. At the same time, funding has become much more difficult and expensive for the sector as a whole, but in particular for the aggressive, highly leveraged participants. These trends firstly illustrate...
Companies mentioned in this report are:
- Klepierre S.A.
- Derwent London PLC
- Cofinimmo S.A./N.V.
- Befimmo S.A.
- Rodamco Europe N.V.
- Atrium European Real Estate Ltd.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
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