Harm Meijer & team, J.P. Morgan Cazenove
The buy side says: “Harm does not let the turmoil in the markets dictate his views on the sector or specific stocks.”
Harm Meijer guides J.P. Morgan Cazenove’s London-based team to a third consecutive appearance atop the list. Meijer, 37, “uses consistent and relevant input for his models,” observes one client. The five-member squad added coverage of two companies over the past year, bringing its total to 44, and expects to add three more this year. The sector is facing challenges from new supply, an increase in online shopping (which affects sales at shopping centers) and a declining working population, Meijer explains. Combined with sluggish overall economic growth, the scenario has resulted in a weakened rental market. “We continue to prefer assets with good-quality income coming from long leases and good-quality tenants, and believe that secondary and tertiary properties will decline further in value,” he says. The team favors U.K. large-cap stocks that are valued at a 20 to 25 percent discount to net asset value and have balance sheets with average loan-to-value ratios of about 40 percent. “We screen for quality stocks with relatively low leverage,” adds Meijer. “If those stocks trade at bear-case valuations and their balance sheets, financing and cash flows are all good, we pick them up.”
The buy side says: “Harm does not let the turmoil in the markets dictate his views on the sector or specific stocks.”
Harm Meijer guides J.P. Morgan Cazenove’s London-based team to a third consecutive appearance atop the list. Meijer, 37, “uses consistent and relevant input for his models,” observes one client. The five-member squad added coverage of two companies over the past year, bringing its total to 44, and expects to add three more this year. The sector is facing challenges from new supply, an increase in online shopping (which affects sales at shopping centers) and a declining working population, Meijer explains. Combined with sluggish overall economic growth, the scenario has resulted in a weakened rental market. “We continue to prefer assets with good-quality income coming from long leases and good-quality tenants, and believe that secondary and tertiary properties will decline further in value,” he says. The team favors U.K. large-cap stocks that are valued at a 20 to 25 percent discount to net asset value and have balance sheets with average loan-to-value ratios of about 40 percent. “We screen for quality stocks with relatively low leverage,” adds Meijer. “If those stocks trade at bear-case valuations and their balance sheets, financing and cash flows are all good, we pick them up.”