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UK landlords slide after Jefferies calls 'London rental recession'

Published 27/09/2023, 08:32
Updated 27/09/2023, 08:35
© Reuters.

MILAN (Reuters) - Great Portland led a slump in UK landlord shares on Wednesday after downgrades from Jefferies that warned London's embattled office market was in "rental recession".

Great Portland had dropped more than 4% by 0720 GMT after analysts at the U.S. bank cut the stock to hold from buy, slashing their price target to 387 pence from 706 pence.

They downgraded rival Derwent, also to hold from buy, and cut both Land Securities and British Land to underperform from hold, knocking 2% off their shares.

Jefferies estimated a 20% contraction in London office usage due to post-pandemic hybrid working and an increasing preference among occupiers for greener buildings in the suburbs.

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