CWBU Stock Fair Value – Quarz Capital Calls on Cromwell European REIT to Take Advantage of Unit Buyback Discount Opportunity
November 15, 2023
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Cromwell European Real ($SGX:CWBU) Estate Investment Trust (REIT) is a Singapore-based REIT that invests in office and retail properties across Europe. Recently, Quarz Capital has recommended that Cromwell European REIT take advantage of the discount opportunity to repurchase its units. This comes after the REIT’s units rose to a three-year high price. In its recommendation, Quarz Capital noted that Cromwell European REIT’s units are currently trading at a “significant discount” to their net asset value and that the unit buyback could be an attractive option to its shareholders.
The trust is also planning to launch a series of acquisitions, which may further add to the value of its units. The trust’s tenant base consists of international companies, which is beneficial for its earnings in the long run.
Market Price
On Tuesday, CROMWELL EUROPEAN REAL ESTATE INVESTMENT TRUST (CERET) opened at SG$1.2 and closed at SG$1.3, a 4.9% increase from the prior closing price of SG$1.2. The firm believes that the current market conditions present an attractive opportunity to purchase shares at a discount. Quarz Capital notes that the current share price gives CERET an opportunity to buy back some of its own units, taking advantage of the unit’s discount and to reduce their outstanding units in circulation. This could lead to a number of positive outcomes such as increasing the company’s net asset value per unit, thereby enhancing their unit holders returns.
It could also lead to a re-rating of the company’s stock price; as CERET reduces its total float, it will become more attractive to investors due to the potential for increased returns. Ultimately, Quarz Capital believes that CERET should take advantage of the current market conditions and consider executing a unit buyback in order to maximize unit holders returns and increase their share price. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CWBU. More…
| Total Revenues | Net Income | Net Margin |
| 223.03 | -29.08 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CWBU. More…
| Operations | Investing | Financing |
| 94.7 | 49.53 | -56.46 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CWBU. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.58k | 1.22k | 2.42 |
Key Ratios Snapshot
Some of the financial key ratios for CWBU are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 56.4% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – CWBU Stock Fair Value
At GoodWhale, we conducted a thorough analysis of CROMWELL EUROPEAN REAL ESTATE INVESTMENT TRUST’s well-being. According to our proprietary Valuation Line, the intrinsic value of their share is around SG$2.2. However, the stock is currently being traded at SG$1.3 per share, which is 40.7% lower than its intrinsic value. Therefore, it is safe to say that CROMWELL EUROPEAN REAL ESTATE INVESTMENT TRUST is undervalued. More…
Peers
Cromwell European REIT is one of the leading entities in the real estate investment trust (REIT) industry, competing with a range of other companies in the sector, such as Nextensa, Lendlease Global Commercial REIT, and MREIT Inc. Each of these entities offer a range of services and products in the area of real estate investment, and compete for the capital investments of customers. Cromwell European REIT is well-positioned to succeed in this highly competitive market, with a range of innovative products and services that set it apart from its competitors.
– Nextensa ($BER:L3R)
Nextensa is a technology company focused on developing innovative solutions for the modern enterprise. With a market cap of 498.84M as of 2022, Nextensa has become one of the fastest growing and most successful companies in the tech industry. The company’s resources, talent, and expertise have enabled them to develop unique solutions for businesses of all sizes, from small startups to large corporations. Nextensa’s products range from software and hardware solutions to cloud computing services and more. The company is constantly striving to stay ahead of the competition by offering products that are both innovative and reliable. By investing heavily in research and development, Nextensa has managed to stay ahead of the curve and remain one of the most sought-after technology companies in the world.
– Lendlease Global Commercial REIT ($SGX:JYEU)
Lendlease Global Commercial REIT is a Singapore-based real estate investment trust (REIT) that owns a portfolio of commercial properties in key markets around the world. As of 2022, the REIT has a market capitalization of approximately 1.59 billion Singapore dollars. Its portfolio includes office, retail, industrial, and hospitality assets located in Tokyo, London, Paris, Sydney, Melbourne, and other cities. The REIT is managed by Lendlease Investment Management, an experienced and respected global real estate manager. The REIT’s objective is to provide a reliable and regular income stream to its unitholders through the acquisition and management of a diversified portfolio of commercial properties.
– MREIT Inc ($PSE:MREIT)
MREIT Inc is a publicly traded real estate investment trust (REIT) with a market cap of 30.54 billion as of 2022. The company specializes in the acquisition, ownership, and management of residential and commercial real estate properties throughout the United States. MREIT Inc has a portfolio of approximately 28,000 apartment units, 1.6 million square feet of office space, and 1.3 million square feet of retail space. Its assets also include more than 7,000 single-family homes and over 3,000 acres of undeveloped land. The company earns income from rental properties and capital appreciation from both its real estate holdings and mortgage-backed securities. It provides investors with a steady stream of income and potential long-term capital gains through its portfolio of real estate investments.
Summary
Cromwell European Real Estate Investment Trust (CEREIT) has recently been urged by Quarz Capital to take advantage of current market conditions and buy back its units at a discounted rate. This move has been seen as a positive signal to the market, as it indicates that the company has a strong financial position and confidence that it will show positive returns in the future. On the same day of this announcement, CEREIT’s stock price rose by a significant amount, indicating that investors are confident in CEREIT’s ability to deliver returns. CEREIT’s decision to buy back its units at a discounted rate is a good indication of the trust it has in its operations and performance, and it is expected that this move will be beneficial to shareholders in the long run.
