(RET) Retail Estates - Sicafi - Ratings and Ratios

Retail Estates N.V. is a specialized real estate investment trust (REIT) that focuses on out-of-town retail properties, typically situated on the periphery of residential areas or along major access roads to urban centers in Belgium and the Netherlands. The companys portfolio comprises a large number of rental units, with a total retail area of over 1.2 million square meters as of March 31, 2025.

The companys business model involves acquiring existing retail properties from third parties, as well as building and commercializing retail buildings for its own account. With a strong presence in both Belgium and the Netherlands, Retail Estates has established a diverse portfolio of retail properties, with an average size of 1,000-1,500 square meters. The companys properties are highly sought after, with an occupancy rate of 97.26% as of March 31, 2025.

As a listed company on Euronext Brussels and Euronext Amsterdam, Retail Estates is registered as a public regulated real estate company, providing transparency and accountability to its investors. The companys real estate portfolio is valued by independent experts, with a fair value of €2,069.54 million as of March 31, 2025.

Analyzing the companys technical data, we observe that the stock price is currently at €61.10, with a 20-day simple moving average (SMA) of €61.11, indicating a stable short-term trend. The 50-day SMA is at €60.35, while the 200-day SMA is at €57.98, suggesting a longer-term uptrend. The average true range (ATR) is 1.12, representing a relatively low volatility of 1.84%. Considering the fundamental data, the companys market capitalization stands at €898.62 million, with a price-to-earnings (P/E) ratio of 11.36 and a forward P/E of 9.89, indicating a relatively attractive valuation. The return on equity (RoE) is 13.81%, demonstrating a strong ability to generate profits for shareholders.

Based on the technical and fundamental analysis, our forecast suggests that Retail Estates is likely to continue its stable performance in the short term, driven by its high occupancy rate and strong presence in the Benelux region. With a relatively low volatility and a stable short-term trend, the stock price is expected to remain within a narrow range in the near future. However, the companys attractive valuation and strong profitability metrics may attract investors, potentially driving the stock price upwards in the longer term. As such, we forecast a potential price target of €65-€70 in the next 6-12 months, based on the companys continued stable performance and the overall market conditions.