5月房地产投资信托基金报告：欧洲上市的商业房地产（CRE）表现大致符合预期，但关税不确定性仍然存在。令人鼓舞的是，月度表现优异者得益于特定公司的消息，如业绩指引上调和并购。面对不确定性，我们建议关注推动特定公司盈利和盈利增长的基本面因素。

Restricted - External European Real EstateNEUTRALEuropean Real EstateKanad Mitra+91 (0)22 6175 1793kanad.mitra@barclays.comBarclays, UKPaul May, CFA+44 (0)20 3134 1444paul.j.may@barclays.comBarclays, UKEleanor Frew, CFA+44 (0)20 3555 0748eleanor.frew@barclays.comBarclays, UK returning to EPS growth by FY28E post troughing EPS in FY26E (see The missing piece of thejigsaw – returning to AREPS growth, 15 May 2025). During the month, we upgraded Aedifica onits return to a growth strategy following making a bid for Cofinimmo. We have been supportersof equity-funded growth and the bid provides ashiftin stance to growth. The combination alsoturns up accretive in terms of EPS CAGR in our scenario analysis for Aedifica (see Healthy growth- upgrade Aedifica to OW, 20 May 2025).Q1 results and trading updates so far have confirmed our views. Castellum Q1 saw the worstrelative share price performance vs EPRA (-6.3%) as they admitted broad-based tenantweakness inoffices.We highlighted the over-rented situation of Nordicofficesin our quarterlydatapack (see Quarterly Datapack #19: Market Weakness in NordicOffices, 23 May 2025).Vonovia, TAG and Aroundtown saw positive reactions to Q1 prints of 2-3% relativeoutperformance to EPRA.Hazeltree data still shows real estate as being one of the more shorted sectors, and the long/short ratio at 1.08 has decreased over the month with longs decreasing but shorts increasing.Short interest has increased to 2.68% from 2.38% over the month.Do get in touch with the team if you are interested in discussing feedback from ourmarketing rounds, CMDs or our recent subsector updates.2 April Highlights•Real Estate versus broader indices:STOXX 600 Real Estate at 2.2% underperformed andEPRA Europe at 4.0% over the month performed in line with the broader index (STOXX 600) at4.0%. Listed UK real estate underperformed FTSE250 and in-line with FTSE100, with the EPRAUK index ending the month at 3.4% vs. the FTSE 250 at 6.1% and FTSE 100 at 3.3%.•Subsector performances in May:Our stock coverage's market cap weighted average returnof 4.6% was slightly above EPRA, and outperformed Stoxx 600 real estate. Retail (+12.5%) wasthe best performing subsector followed by Healthcare (+7.9%). Self Storage (+0.6%) was theworst performer followed by Residential (+3.0%). Hammerson and URW's guidanceimprovements positivelyaffectedretail share price performance while M&A in healthcare seesoutperformance in the subsector. Self Storage is negativelyaffectedby macro uncertainties.•Single-stock names in May:Unibail Rodamco Westfield (+17.4%) was the best performerfollowed by Cofinimmo (+16.5%) and Icade (+15.6%). Unibail Rodamco Westfield in its capitalmarkets day guided to returning to EPS growth by FY28E. Cofinimmo being the target forAedifica outperformed during May. Workspace (-6.2%) was the worst performer followed byWihlborgs (-3.7%) followed by PSP Swiss Property (-1.5%). Workspace produced a profitwarning for FY26E and will be doing a strategic review which negativelyaffectedthe name.•Swap rates contracted over May:EUR 5y (2.19%) expanded 6 bps. GBP Swap (3.85%)expanded 24 bps while SEK Swap (2.31%) expanded by 2 bps. We note that refinancing atthese swap rates remains a headwind for CRE vs current in-place cost of debt.•European 10-year government bond yields stable in Continental Europe:German Bunds(2.50%) expanded by 6 bps and Dutch yield (2.71%) expanded by 3 bps. Italian 10Y (3.48%)compressed by 9 bps, Spanish yield (3.09%) compressed by 2 bps while French 10 Y (3.16%)compressed by 1 bp. UK Gilts (4.65%) expanded by 21 bps. In the Nordics, Swedish yield(2.33%) expanded by 1 bp while Norwegian yield (4.01%) expanded by 13 bps. Pan-Euro REITsCorporate yield (3.70%) expanded by 2 bps.•CBRE UK April monthly index highlights (published in May):All-property UK capital valueswere up 0.2% MoM in April 2025. This was driven by ERV growth of 0.2% MoM. Retail,Industrials andOfficesCVs were all up +0.2% MoM. Looking at the subsectors :°OfficeCV growth was +0.2% MoM (with flat yields)after+0.1% in March and -0.1% inFebruary. Rental value was +0.2% in March (+0.6% February). Central Londonofficevalueswere +0.7% in Aprilafter+1.0% in March and -0.4% in February. Split by City -0.2% andWest End +0.9%. Rental value was stronger in the City than West End +0.4%.°Industrial CVs were up 0.2% MoM following 0.4% in March, +0.3% in February, with yieldsflat and rental value growth +0.2% (+0.4% March, 0.3% February).°Retail CVs were +0.2% in April (+0.4% March, +0.2% February) with Shopping Centres +0.2%and Retail Warehouse +0.3%. All retail ERVs were +0.3% MoM, +0.2% for shopping centresand +0.2% for retail warehouses. 3 FIGURE 1. Barclays Real Estate Research – Ratings, price targets and subsector preference overviewNote: Ratings and price targets as of 31 May 2025; Up/down arrows indicate recent upgrade/downgrade. NEW implies initiations during the month. Industry view:Neutral. For full disclosures on each covered company, inclu