Extracted Insight: Goldman Sachs upgraded UK logistics and data‑centre specialist Segro to Buy, raising its price target to 900 pence from 800 pence, citing stronger demand from Asian and food retailers and noting that higher interest rates have depressed the share price, creating an attractive entry point. Conversely, the bank cut Swedish property company Castellum to Neutral from Buy after the stock outperformed the coverage by roughly 20% YTD, a performance the bank attributed to corporate actions such as disposals near book value and share buybacks; analysts led by Jonathan Kownator see a 16% upside to a revised 12‑month target of SEK 146. The analysts maintained a constructive view on European real estate, highlighting that higher construction and funding costs and tighter regulation are curbing new supply, thereby giving pricing power to well‑positioned landlords. They noted that European real estate appears cheap relative to its history and that correlations with real rates are weakening. Goldman forecasts average earnings growth of about 2% for the sector in 2026, accelerating to 6% in 2027, with an implied dividend yield of 5.5%. The firm retains Buy ratings on logistics and data‑centre names including CTP, Merlin, WDP, Tritax Big Box and Segro, flags Vonovia as a top pick in a falling‑rates scenario, and sees Unibail and Klepierre benefiting from retail resilience due to limited new supply. Sell ratings are kept on Nordic and secondary office assets such as Entra, Fabege, Icade and self‑storage group Big Yellow.
