Upbeat on real estate, Citi resumes Colonial with 'buy'

** Citi resumes coverage of Inmobiliaria Colonial COL with "buy", reflecting its conviction in the real estate cycle recovery and prime office market strength

** "(Interest) rates have continued to decline, and post-pandemic office trends show increased demand into limited prime office supply," it says

** According to the broker, prime vacancy rates are estimated to decline further, placing upward pressure on rents in its main markets of Paris, Madrid and Barcelona

** "The worst looks over", Citi says, noting the Spanish real estate group has endured a sustained period of share price weakness from their peak in Q1 2020 of over 13 euros per share to mostly below 6 euros over the last three years

** Out of 19 analysts that cover Inmobiliaria Colonial, 12 rate the stock "strong buy" or "buy, ​five rate it "hold" and two​ rate the stock "strong sell" or "sell"

** As of Friday's market close, the stock is up 15.3% since the start of the year