UNBLF - Unibail-Rodamco-Westfield: Assessing The Impact Of Higher Rates

• Q1 2022 tenant sales at 93% of 2019 levels, with upward momentum in March (95%). However, footfall lags behind at 82% (March 84%).
• The company confirmed 8.2-8.4 EUR/share Adjusted Recurring Earnings Per Share (AREPS) guidance despite disposals.
• AREPS could take a hit of about 2.5 EUR/share over the next 8 years after factoring in higher rates (4.9% for 11 year bonds) and indexation (2% annually).
• Comfortable liquidity position with average debt duration of 8.6 years and 36 months of maturities covered as of the end of 2021.
• Given the recent price drop, a long call or a long straddle strategy looks very appealing.

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