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Athmane Benzerroug & team
Deutsche Bank
First-Place Appearances: 4

Total Appearances: 4

Team Debut: 2011

Deutsche Bank continues to dominate this roster, claiming first place for a fourth straight year. Dubai-based Athmane Benzerroug, 40, leads this four-person team and partners with Tomasz Krukowski in directing the No. 2 squad in Construction & Engineering. From offices in Johannesburg, Moscow and Warsaw, these analysts monitor 33 regional real estate companies, seeing a mixed bag across markets. They expect stocks in the Middle East & North Africa to continue to be driven by housings needs, positive economic growth and government expenditures. Evaluating the Russian developers, Benzerroug notes that although “the near-term prospects of the market look decent, given existing supply limitations and acceleration in mortgage penetration, longer-term demand fundamentals are less constructive, due to the country’s weak demographics profile and inevitable supply response.” On South African names, they are biased toward better-quality, more-defensive and higher-grade property portfolios, particularly in the retail subsector. However, Benzerroug cautions, “over the next 12 months, economic conditions could remain challenging, adding pressure to rental growth and vacancies.” Real estate companies in Central Europe have been suffering the effects of deteriorating fundamentals in the industry, including falling rents in the face of increasing supply of new commercial space. Even so, he reports, “rent pressure is cyclical, and current levels appear to reflect the bottom of the cycle.” Looking ahead, the researchers are bullish on United Arab Emirates–based Emaar Properties. The diversified builder, they say, boasts strong exposure to both the growing Dubai tourism industry, through its retail and hospitality businesses, and the residential market’s turnaround. Their target price of 11.80 dirhams implies a 12.9 percent upside to the shares’ late May value. They also recommend buying Sixth of October Development and Investment Co., an Egyptian land developer, thanks to its healthy presales momentum, exposure to robust demand for properties in its home market, strong management team and cheap valuation. The stock closed May at 27.16 Egyptian pounds, and the Deutsche group projects a rise to E£30.60.