Broker snap: Nomura cools on property stocks

6th Aug 2009 12:02

Nomura has been taking a look at property stocks and is no longer bullish on the sector following some good gains in share prices lately.It now has a 'neutral' rating on Hammerson compared with a 'buy' recommendation previously, while Liberty International is downgraded to 'reduce' from 'neutral'.'Real estate values are stabilising but rents are still in mid recession,' the broker says.It continues: 'Until capital growth is re-established, we believe REITs need to earn their keep with high cash returns, long leases and durable tenant mix.'