On top of its H1 21 figures, Wereldhave disposed four out of six of its French malls for a cash consideration of €305m. The latter book value was €504m. Such a cash-in will rebalance the LTV ratio to a much affordable level of 42% pro forma.
Companies: Wereldhave N.V.
Guidance wasn’t lowered but FY 21 will come in at the lower end of it (€1.80 – €2.00 FFO per share) due to the H1 21 lockdowns. Net Rental Income was down 21% yoy. With the LTV standing at 46%, it is too high in our view, but disposals are on track.
Consolidated vacancy was up by only 50bp from 5.4% to 5.9% yoy. It was down 10bp (improvement) in Q4 20 alone. This confirmed URW’s behaviour in Continental Europe, with low additional vacancy attributable to the very low number of retailers’ bankruptcies.
Following Mercialys, Wereldhave has confirmed some early signs of stabilisation in Q3 20. Local units have proven more resilient than bigger or in-town ones. Wereldhave didn’t pass the pass anyway but, following the negative Q2 20, Q3 20 looks to be something of a respite.
Our FY 20 EPS is too high and we will have to cut it. However, our valuation still accounts for the contribution of a capital increase in FY 21 and our target price should stay broadly stable. We maintain our Sell rating.
Wereldhave will be impacted by the “low” footfall of Q1 20, or “no” footfall of Q2 20. Progressive de-containment measures will probably lead to a long and slow recovery. The big issue will be the forward balance sheet. We stay negative.
Following its Finnish disposal in October 2018, Wereldhave will exit the French market. The strong negative revaluations of €450m in FY 19, or 13% of the full portfolio’s value, pushed the LTV ratio to 45%. The strategic plan will focus the company on both the Netherlands and Belgium. Should it fail, the risk of a right issue in the coming years will become much clearer.
We observed sequential decreasing rents in Q3 19. As H2 19 should be impacted by low occupancy rates, we keep away from Wereldhave and stick to our negative opinion.
Wereldhave’s negative revaluation (GAV lost 3.7%) was much higher than Klepierre’s and Mercialys’ in relative terms (c. -1% lfl). Here is confirmation of the beginning of a negative sequence in the Continental shopping malls’ universe.
Wereldhave posted nice Q1 19 lfl figures at first glance. From Q2 19, the performance should revert to an underlying less positive trend after the momentary positive impact of the pipeline’s full completion.
Wereldhave’s trading statement for Q3 18 shows a decreasing rental income for the first three quarters of FY18 to €167.4m (-1% yoy), due to lower rental income in France. The negative impact of gross rental income from disposals in 2017 has been offset by income growth in the Netherlands and Belgium. The occupancy rate increased by 0.1% in Q3 18, to reach 96.2% at September 2018 (+0.7% yoy), pushed by an improvement of 20bp in the Netherlands and 10bp in the other countries. Overall footfall inc
Wereldhave released its FY17 results, posting a net profit of €84.3m, down by 30.2% yoy. Gross rental income amounted to €223.4m, dropping by 3% compared to FY16, mainly due to a substantially lower rental income in France and disposals in the Netherlands. The value of the total investment portfolio amounted to €3.8bn. Overall, the results are below our estimates.
GRI stood at €207m, a jump from €126m in FY14, mainly coming from massive acquisitions: a portfolio of 6 shopping centres in France (from Unibail end-2014) and 9 additional shopping centres acquired from Klepierre in the Netherlands in 2015.
Net profit increased to €27m and EPS at €3.23 gained 9% yoy and the dividend proposed at €3.01 per share is up 5% and exceeds our expected €2.87.
Wereldhave also exited the office segment in France, with the disposal of the three remaining assets for €
Wereldhave has announced the acquisition of a 9 shopping centre Dutch portfolio from Klepierre for €730m, consisting of €687m for operational properties and €43m for the development (in the CityPlaza). The assets acquired at a 6.2% yield are expected to contribute as much as €45.1m to NRI from 2016. 25 professionals will be joining Wereldhave from Klépierre (o/w 15 entirely dedicated to the new portfolio). The transaction is expected to be EPS accretive as soon as 2016.
To finance the acquisiti
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Revolution Beauty is a multi-brand, multi-category, multi-channel, mass beauty innovator with proven global scale. Since launch in 2014, the Group has grown rapidly (FY14 – FY19 CAGR of 99%) generating revenue of £137.5m in the 12m to 31 December 2020. Revolution has an established retail footprint of c.11,000 doors across leading retail chains in the UK, USA and internationally, driving global brand recognition. This is complemented by a fast-growing digital business (+81% in 2020) including it
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Litigation Capital Management has released its results for FY21, reflecting on a positive year for the group in very challenging market conditions. Although well flagged, these set of results highlight the strength of LCM's investment process as it's maturing balance sheet continues to deliver strong returns on capital as key cases settle.
Companies: Litigation Capital Management Ltd
Oversubscription of Gore Street’s PrimaryBid offer is helpful although given the attractions of the energy storage market perhaps not surprising. The larger placing remains open with results announced at the end of the month. Together the c.£70m raise will provide the fund with ammunition to pursue its strong pipeline of storage opportunities.
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Following the successful completion of the Hawthorn disposal, towards the top-end of our £180-230m range, and the transformation to a pure retail property group we update forecasts and briefly set out our investment thesis ahead of the Group’s CMD. We estimate FFO for FY22F, FY23F and FY24F of 7.2p, 8.3p and 9.4p per share respectively; a 3-year CAGR of c35% over the 3.8p generated in FY21A. Post-Hawthorn, balance sheet metrics have markedly improved, flexibility enhanced, and refinancing risk r
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Gore Street continues to find good projects in the GB market and has today announced a 57MW project in Leicester. It is now more active in seeking projects beyond the UK and RoI in North America and Western Europe and we think there are significant opportunities in these geographies. The company now has a pipeline of 2.5GWh with 2GWh of that in new geographies and 160MWh of that under exclusivity. With these opportunities in mind the company has announced a placing at 107p.
Today's in-line results illustrate the financial impact from restrictions upon face-to-face Insurance sales over the past 15 months. However, they heavily mask the strategic momentum underway across the Group. Since the lifting of restrictions from June, Insurance is exhibiting a strong and accelerating rebound in demand, which should mark an inflection point for policyholder numbers and restore premium income to pre-pandemic levels over the medium-term. We expect the Group's other product lines
Companies: Personal Group Holdings Plc
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Eurowag confirms its intention to undertake an initial public offering on the Main Market (Premium). The Offer would be expected to comprise both (i) new Ordinary Shares to be issued by the Company, raising gross proceeds of approximately EUR200m to support Eurowag's growth strategy and (ii) existing Ordinary Shares to be sold by existing Eurowag shareholders. Eurowag is a leading pan-European
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Poolbeg, Proposed AIM listing and demerger from Open Orphan (ORPH.L). Funds raised as part of Admission will be used primarily to fund the clinical trial costs associated with the development of the Company’s POLB 001 asset as a treatment for severe influenza and to acquire and develop new portfolio assets. Offer details and timing TBA
Wise, the Fintech and payments start-up is planning to pull the trigger on a direct listing on the London Stock Exchange as s
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Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ at $1.34. One year on, the FTSE 100 has risen to 7,119, a rise of 21%, it remains 7% below the peak in January 2020. From an international viewpoint, US and European markets continue to trade at record highs. The US Federal Reserve is close to withdrawing some of its economic support this year as inflation picks up and the e
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In-line interim results to 30 June 2021 show revenues up 93% to £8.5m, EBITDA up 118% to £2.4m and AUM up 15% to £1.1bn compared with the FTSE All Share, which grew 11.1%. DFM assets outperformed the All Share by almost 4x, increasing 40% to £606m. Recent acquisitions are all performing as initially expected, with the full opportunities that can be realised as a result of the network effects and joined up approach, likely yet to come. While EBITDA is performing very well, reaching 54% of our 202
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Big Technologies (BIG) provides market leading electronic monitoring (EM) systems on a SaaS (Software as a Service) basis primarily to criminal justice systems around the world. EM involves utilising location technologies to remotely monitor and manage people within correctional systems.
Companies: Big Technologies PLC
Belvoir’s H1 2021 results are exceptionally strong, with adj. EPS up +50%. They were, of course, aided by a very buoyant housing market, but this does not detract from the strategic progress the group continues to make. The group’s growth strategy has supported 24 years of unbroken profit growth and, while 2022 will likely see cooler market conditions, there are increasing signs it will be a gradual return to more normal conditions. The acquisition of Nicholas Humphreys in H1 and The Nottingham
Companies: Belvoir Group PLC