WRDEF - Wereldhave: An 11.5% Unlevered Return Opportunity For 2023-2026
- Wereldhave delivered 0.41 EUR/share direct result in Q4 2021, implying a run-rate at the top of the current 1.5-1.6 EUR 2022 management forecast range.
- Residential gains and a period of above-inflation growth should lead to abnormally high returns in 2023-2026.
- A modest rise is ECB interest rates can have a substantial impact given net debt is 788M EUR against a market capitalization of 634M EUR.
- The stock is vulnerable over the short term given recent strong performance and a cheaper way to gain exposure via Wereldhave Belgium.
- Nevertheless I remain optimistic over the medium term, although combining the position with bank shares looks appropriate.
For further details see:
Wereldhave: An 11.5% Unlevered Return Opportunity For 2023-2026