To: Spekulatius who wrote (62891 ) 11/20/2019 10:07:38 AM From: Nya_Quy Respond to No doubt WHA looks cheaper than Vastned. Generally, we are finding that higher that higher quality real estate outperforms lower quality real estate in the US and the same seems to be the case in Europe. (A -20% performance isn’t great, but it beats ~60% from WHA). However, neither higher quality and much less lower quality have performed well anywhere. Sure, but for some reason low quality RE has been punished disproportionally and erratically. In the case of WHA (40.3 mln shares outstanding) its share price broke sharply upon announcing the dividend cuts on Feb 1, '18 (of course management knew it would hurt the share price), going from 40 to 30 within one month, after which it never came above the low 30s and ended up to as low as 18 last summer.Also, the Dutch subs are low float, which can distort pricing. So you can’t just subtract the current market cap of the Belgian sub to come up with a standalone valuation for the Dutch RE, because the valuation of the Belgian sub may drop, if more shares or all shares are floated. By "Dutch subs" you mean the NL and FR operations? I use the current EV of WEHB and WHA to determine the current EV of the non-BE ops. I compare this current non-BE EV with a 'fair' non-BE EV which is calculated using the FCF from the non-BE ops. Afterwards I add the current BE EV back to the fair non-BE EV in order to obtain the total fair EV of WHA. From this latter quantity I determine the fair market value of the WHA equity. So yeah, the WHA market value does depend on the valuation of the WEHB. But as the BE operations turned out to be more solid than the rest of the ops, I assumed the WEHB EV to stay were it is.
