Jefferies maintains its Hold rating on the stock with an unchanged price target of 58 euros following the publication of the first-quarter 2025 figures.

In its latest research note, Jefferies observes that like-for-like rental growth slowed across all segments in the first quarter as indexation faded. Occupancy rates edged slightly lower and new space leasing remained pending, weighing on short-term momentum.

However, the analyst highlights that FY2026 guidance was confirmed during the conference call, supported by strong office leasing momentum and improving occupancy, while the hotel sector continues to expand selectively.

As a reminder, the group forecasts a 4% increase in its EPRA adjusted EPS for 2026 compared to the previous year.

According to Jefferies, office leasing activity was dynamic in the first quarter, with 35,100 sqm signed.

Office occupancy rose by 30 basis points quarter-on-quarter to reach 95.4%.

Jefferies also indicates that like-for-like rental income growth slowed sharply to +2.4% year-on-year (compared to +3.4% for FY2025 and +4.9% in Q1 2025).

In the office sector, like-for-like rental growth slowed to +2.1% year-on-year (versus +3.4% for FY2025 and +5.1% for Q1 2025).

In the German residential market, like-for-like rental growth slowed slightly to +3.6% year-on-year (versus +4.8% for FY2025 and Q1 2025).

In the hotel sector, like-for-like rental growth slowed significantly to +1.4% (compared to +1.6% for FY2025 and +4.7% in Q1 2025).