Tuesday, June 30, 2020

Retail Estates notes

Interesting Belgian company which has been listed in Amsterdam since 2018. 

Has been growing a retail (out of town) real estate portfolio in a time where it has been fashionable to sell retail real estate because of the rise of E-commerce. (People have bought more online in the Netherlands than in Belgium in the past 2 decades). 

For example how realistic is the share price?

Over-/undervaluation compared to net asset value IFRS

3/2020      3/2019      3/2018      3/2017      3/2016
-25,07%   31,01%     19,30%    34,51%     45,85%

Sales 2019 EUR 107m

Dividend: EUR 4,40 / EUR 62 = 7%

Portfolio EUR 1,65b strong growth during the financial crisis EUR 250m in 2008 and EUR 500m in 2011. Also bought real estate during the 2020 coronacrisis. 

Portfolio % growth faster than per share NAV % growth due to the sales of new shares, whilst paying out a dividend. 

Conclusion 2018 ( I wrote the name of the company incorrectly) was seemed expensive, but the share price and NAV have done much better than Wereldhave: https://sinaas.blogspot.com/2018/11/real-estates-share-price-and-intrinsic.html 

Retail Estates might book a loss in 2020 due to impairments linked to the coronacrisis?

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