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Retail Estates N.V. (RET.BR)

Company Dividend Discount ModelIndustry: REIT - RetailSector: Real Estate

Valuation Snapshot

Stable Growth$849.86 - $2,585.79$2,423.26
Multi-Stage$352.89 - $386.00$369.14
Blended Fair Value$1,396.20
Current Price$63.50
Upside2,098.75%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS23.05%12.63%4.914.724.163.903.651.742.802.031.941.60
YoY Growth--4.14%13.44%6.75%6.74%109.54%-37.84%37.90%4.78%21.07%7.15%
Dividend Yield--8.15%7.23%6.39%5.27%6.25%3.68%3.42%2.84%2.56%2.08%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)190.17
(-) Cash Dividends Paid (M)88.78
(=) Cash Retained (M)101.40
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)38.0323.7714.26
Cash Retained (M)101.40101.40101.40
(-) Cash Required (M)-38.03-23.77-14.26
(=) Excess Retained (M)63.3677.6387.14
(/) Shares Outstanding (M)14.6314.6314.63
(=) Excess Retained per Share4.335.315.96
LTM Dividend per Share6.076.076.07
(+) Excess Retained per Share4.335.315.96
(=) Adjusted Dividend10.4011.3812.03
WACC / Discount Rate6.79%6.79%6.79%
Growth Rate5.50%6.50%7.50%
Fair Value$849.86$2,423.26$2,585.79
Upside / Downside1,238.37%3,716.16%3,972.11%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)190.17202.54215.70229.72244.65260.55268.37
Payout Ratio46.68%55.34%64.01%72.67%81.34%90.00%92.50%
Projected Dividends (M)88.78112.09138.07166.94198.99234.50248.24

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.79%6.79%6.79%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)103.98104.96105.95
Year 2 PV (M)118.80121.06123.35
Year 3 PV (M)133.25137.08140.97
Year 4 PV (M)147.33153.00158.83
Year 5 PV (M)161.06168.84176.91
PV of Terminal Value (M)4,497.114,714.324,939.85
Equity Value (M)5,161.535,399.265,645.86
Shares Outstanding (M)14.6314.6314.63
Fair Value$352.89$369.14$386.00
Upside / Downside455.73%481.33%507.88%

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