Lar España Real Estate - Update from QuotedData
29th October 2024
Undervalued by offer
We believe that the revised bid of €8.30 per share for Lar España Real Estate, from a consortium that includes its manager Grupo Lar and US private equity firm Hines, still undervalues the company and its future prospects. The enterprise value implied by the bid price of €1,130m is a considerable discount to the value of the portfolio of €1,304m (at 30 June 2024) and a substantial spread to the portfolio yield (7.8% to 6.6%) and the prime market yields in the wider Spanish retail sector.
The company had commenced an asset recycling programme, which included selling properties where value-add opportunities had been exhausted, and was on the verge of buying shopping centre assets with significant value enhancing potential. These would have been both NAV- and earnings-accretive, adding to the company's impressive long-term total return record. We feel that the current offer price, which is an 18.8% discount to the most recent reported EPRA net tangible assets, does not do justice to a company of Lar España's standing and track record.
Full Research:
https://quoteddata.com/research/lar-espana-real-estate-undervalued-by-offer-qd/
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NB: Marten & Co was paid to produce this note on Lar España Real Estate, and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the Financial Conduct Authority. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority.
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