The Nest Egg Portfolio: Wereldhave's Downward Spiral Creates Opportunities For This 9.5% Yield REIT

Introduction
In this edition of the Nest Egg Portfolio, I will have another look at Wereldhave (OTC:WRDEF), whose share price continues to fall as the entire commercial REIT sector in Europe is going through a tough time. Wereldhave just sold a large asset below its book value, but at a substantially higher value than the calculations in my conservative assumptions. The balance sheet has now been strengthened, but there obviously also was a negative impact on the dividend coverage ratio. I will explain all the consequences of this deal in this article.
Did you miss the previous edition of the Nest Egg Portfolio where I discussed the buyout of BinckBank (OTC:BINCF) (OTC:BINCY) stock? You can re-read it here.
Portfolio update
Wereldhave exits Finland: the details
Wereldhave (OTC:WRDEF) has completed the sale of the Itis shopping center in Finland, which marks the complete withdrawal from the Finnish market (saving some G&A expenses in the process).
It is has been sold for a gross price of 516M EUR, which is 8.5% below the book value. Wereldhave will receive a net amount of 450M EUR after paying taxes on the accumulated value increase of the shopping center. This will allow Wereldhave to decrease the LTV ratio by 6% (to 37% based on Wereldhave’s own book value), strengthening the balance sheet in the process.
The consequences
It doesn’t look like Wereldhave will use the proceeds to purchase new assets, but is rather solidifying its balance... Read more