UNBLF - Unibail-Rodamco-Westfield: Structurally Challenged And Overlevered
- Unibail-Rodamco-Westfield's rally since Sept. 20 is detached from business fundamentals, which remain severely impacted by COVID-19.
- The shares are overvalued with the current share price 30% higher than the intrinsic value of €53.
- Long-term structural issues facing shopping centres have been exacerbated by the pandemic.
- Highly levered with €27bn net debt (17x LTM EBITDA), an all-time-high LTV of 48%, and interest coverage of 0.6x.
- Applying a UK/US yield (6.8%) would imply a -28% (€16bn) write-down, in which case the equity would be worthless.
For further details see:
Unibail-Rodamco-Westfield: Structurally Challenged And Overlevered