Ann: URW 2021 Full-Year Results, page-5

trading on 11.6% 2022 earnings yield after last night’s move, and 43% discount to net appraisal/book value.

in the last couple of months they’ve sold assets in Stockholm and Paris at a few % below appraisal value. The Carre Senart centre, which they announced a 45% sale of yesterday, is not a premium asset… it’s in the outer suburbs of Paris next to a highway.. not in a residential area. Yet the sale justified current book value of 125eur

still looks very undervalued based on these facts.

the overhang is the US portfolio which is 24% of revenues… not a big deal imo given that CoVID was still restricting foot traffic during 2h 2021 yet US store sales were on par with 2H 2019. So the US portfolio is still very much earning its keep and justifying book value.

Market will be jittery about interest rate rises, but if that’s the only thing to worry about then doesn’t seem a big deal given that revenue is recovering and vacancy is now just 7.0% across the portfolio.

Technically it’s broken out from and backtested an 8mth bear flag. It hit 85.79 in June 2021, and this this earnings report should see it hit that again soon unless the US market falls over and credit yields blow out. That would put it on a 10% earnings yield, in line with Euro peer Klepierre but still higher than US and Asian mall REITs. Not to mention, CoVID mask restrictions and hesitancy are still pervasive.

Looks bullish