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1. Company Snapshot

1.a. Company Description

At Wereldhave, we're reinventing shopping centers.Our centers are places where people go, not only to shop, but also to work, relax and spend time with friends and family.We now own and operate 30 center locations across the Netherlands, Belgium and France – combining leisure, entertainment, health & beauty and food & drink with more traditional retail.


We choose centers close to cities – that are well connected to public transport and where we can offer free parking.Our centers are anchored around food retail – each has at least one hypermarket or two to three supermarkets.Our centers are places where people go, not only to shop, but also to meet and relax with friends and family.


We take a deliberately long-term approach.Our aim is to deliver attractive returns for our investors, create positive value for local communities and other stakeholders and, over time, increase the value of our investments.As a business, consumers are at the heart of everything we do.

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1.b. Last Insights on WHA

Wereldhave N.V.'s recent performance was driven by several positive developments. The company strengthened its credit profile with the inaugural European Private Placement (EUPP) transaction, securing a €50 million loan with a 10-year tenor, and a new USPP transaction of €75 million with a 7-year tenor. Additionally, Wereldhave announced its first joint venture with Sofidy (Tikehau Group) to acquire shopping center Stadshart Zoetermeer in the Netherlands. These moves align with the company's strategy and acquisition criteria, showcasing its growth and expansion efforts.

1.c. Company Highlights

2. Wereldhave Delivers Strong Financial Performance with Increased Guidance

Wereldhave reported a robust financial performance, raising its direct result per share guidance to €1.75-1.85, reflecting strong operational momentum. The company achieved an 8% year-over-year increase in direct result per share, reaching €0.84, driven by a 6% like-for-like net rent growth. This growth was supported by acquisitions in Luxembourg and Tilburg, as well as solid performance across its core markets. Belgium contributed a 1.6% MGR uplift, while the Netherlands saw a 0.5% increase, and Luxembourg exceeded ERV expectations. As CFO, Reinoud Slotweg, noted, "The combination of strategic acquisitions and organic growth has positioned us well to meet our revised guidance."

Publication Date: Jul -24

📋 Highlights
  • Guidance Increase: Raised direct result per share guidance to €1.75-1.85, driven by 6% like-for-like net rent growth and acquisitions.
  • Portfolio Divestments: Sold shopping centers for €108 million (€56M Winkelhof, €40M Roselaar, €12M smaller Belgian projects).
  • Debt Profile Improvement: Secured €125 million financing, maintaining Fitch BBB rating, with net LTV set to drop to 42% post-disposals.
  • LifeCentral Strategy Progress: Advanced in Kronenburg and Nivelles, with a new Sofidy JV expected to add €0.04 to direct result per share.
  • ESG Initiatives: Installed 400 solar panels and plans for 350 EV charging points, enhancing sustainability efforts.

Debt Profile and Financial Discipline

Wereldhave strengthened its balance sheet with a €125 million financing and maintained its Fitch credit rating of BBB with a stable outlook. The net loan-to-value (LTV) ratio stood at 44.9%, though this is expected to decline to 42% following the disposal of the Full Service Center at Sterrenburg. The company remains committed to its target of keeping net LTV below 40%, demonstrating its focus on financial discipline. The recent €160 million acquisition in Luxembourg, partially financed by a €30 million equity issue, along with a €55-56 million dividend payment, temporarily elevated the LTV, but management plans to reduce it through disposals.

Portfolio Revaluation and Operational Highlights

The company's portfolio revaluation showed a slight increase, driven by the completion of full centers, with a modest uplift in the core Benelux portfolio. Luxembourg saw significant valuation gains, while the Netherlands experienced a minor decline due to a €8 million loss on a single asset in Tilburg. Operational performance was strong, with progress on key developments such as Kronenburg and Nivelles under the LifeCentral strategy. The new joint venture with Sofidy on Stadshart, Zoetermeer, is expected to contribute €0.04 to direct result per share, further enhancing earnings visibility.

ESG Initiatives and Strategic Focus

Wereldhave continues to prioritize ESG initiatives, adding 400 solar panels at Capelle aan den IJssel and planning 350 new EV charging points by next year. The company is also advancing its strategic agenda, including capital recycling and acquisitions in Belgium, where it sees a €500 million investable universe in shopping centers. Management remains focused on its 2025 guidance of €175-180 million, supported by a strong start to the year and sustained rental growth.

Valuation and Dividend Outlook

Wereldhave's valuation metrics reflect its solid financial position, with a P/E ratio of 5.42 and a dividend yield of 7.01%, indicating attractive returns for investors. The company maintained its dividend guidance at €1.25 per share, slightly below its policy range, due to the current LTV ratio. Despite this, the strong operational performance and strategic initiatives suggest that the company is well-positioned to deliver long-term value to shareholders.

3. NewsRoom

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Wereldhave acquires shopping center Ville2 in Charleroi, Belgium

Nov -19

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Wereldhave (ENXTAM:WHA): Evaluating Valuation After Recent Share Price Rally

Oct -17

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Wereldhave and Ocean Outdoor announce partnership for new digital media network across 11 Dutch centers

Sep -26

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LVMH: Share transactions disclosure

Sep -09

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The BANK of Greenland issued and early redemption of Senior Non-Preferred capital

Sep -09

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Cointreau Launches First-Ever Ready-To-Serve Range – Introducing Cointreau Citrus Spritz

Sep -09

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What Does the Steep 20% Drop Mean for Rémy Cointreau’s 2025 Outlook?

Sep -09

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Société Foncière Lyonnaise (ENXTPA:FLY): Assessing Valuation After a Year of Solid Share Price Gains

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.82%)

6. Segments

Shopping Centers

Expected Growth: 4.83%

Wereldhave N.V.'s shopping centers segment growth of 4.83% is driven by increasing foot traffic, strategic redevelopments, and a strong focus on omnichannel retailing. Additionally, the company's proactive asset management, successful leasing efforts, and favorable market conditions in the Netherlands and France contribute to the segment's growth.

Service

Expected Growth: 4.83%

Wereldhave N.V.'s 4.83% growth is driven by increasing demand for retail spaces, strategic acquisitions, and effective asset management. The company's focus on convenience retail and mixed-use developments also contributes to its growth. Additionally, Wereldhave's strong balance sheet and ability to invest in value-enhancing projects support its growth momentum.

Offices

Expected Growth: 4.65%

Wereldhave N.V.'s office segment growth of 4.65% is driven by increasing demand for high-quality office spaces, particularly in urban areas, fueled by the growing need for flexible and collaborative work environments. Additionally, the company's strategic focus on sustainability and energy-efficient buildings, as well as its strong asset management capabilities, contribute to the segment's growth.

7. Detailed Products

Shopping Centers

Wereldhave N.V. develops and manages shopping centers, providing retail spaces for various brands and services, offering a comprehensive shopping experience to customers.

Office Buildings

The company owns and operates office buildings, providing modern and flexible workspaces for businesses, entrepreneurs, and professionals.

Residential Properties

Wereldhave N.V. develops and manages residential properties, offering apartments, houses, and other living spaces for individuals and families.

Mixed-Use Developments

The company creates mixed-use developments, combining residential, office, and retail spaces, fostering vibrant and sustainable communities.

8. Wereldhave N.V.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Wereldhave N.V. operates in a competitive market with several substitutes available, but the company's strong brand presence and diversified portfolio mitigate the threat.

Bargaining Power Of Customers

Wereldhave N.V.'s customers have limited bargaining power due to the company's strong market position and diversified tenant base.

Bargaining Power Of Suppliers

Wereldhave N.V. has a moderate level of dependence on its suppliers, but the company's scale and diversification help to mitigate the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the real estate industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The real estate industry is highly competitive, with many established players competing for market share, making the intensity of rivalry high.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 49.39%
Debt Cost 3.95%
Equity Weight 50.61%
Equity Cost 11.43%
WACC 7.73%
Leverage 97.60%

11. Quality Control: Wereldhave N.V. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Wereldhave

A-Score: 7.2/10

Value: 5.7

Growth: 4.0

Quality: 6.5

Yield: 10.0

Momentum: 7.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Patrimoine et Commerce

A-Score: 6.8/10

Value: 4.5

Growth: 4.8

Quality: 4.9

Yield: 8.8

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Wereldhave Belgium

A-Score: 6.8/10

Value: 4.0

Growth: 4.2

Quality: 6.4

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Retail Estates

A-Score: 6.4/10

Value: 5.4

Growth: 3.9

Quality: 6.9

Yield: 9.4

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Frey

A-Score: 5.9/10

Value: 3.3

Growth: 5.4

Quality: 4.5

Yield: 9.4

Momentum: 3.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Vastned Retail

A-Score: 5.6/10

Value: 6.1

Growth: 3.7

Quality: 4.2

Yield: 10.0

Momentum: 3.0

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.22$

Current Price

19.22$

Potential

-0.00%

Expected Cash-Flows