Their sqm valuation might not be understated compared to peers.
Not exact matches
Sirius hinted at their displeasure / disagreement, and I'd concur: Just look at bund yields, the market flight to safety, and stable / rising NAVs elsewhere in the sector... Somehow, DTZ lowered
valuation to EUR 421 per
sqm, based on average rent of EUR 4.21 per
sqm per mth — a gross yield of 12 % on rented space.
For example, I excluded Conwert from the peer group average
valuation (as its
valuation of EUR 1,305 per
sqm is far higher — as we also see in S Germany), but included it in my average yield (as its portfolio yield of 7.05 % is v similar to the overall 7.28 % peer average).
property
valuation per
sqm.
I must be missing something but why do you multiply the rent per
sqm by 12 before you divide by
valuation per
sqm to get rental yield?
With the rally in Bund yields, already cheap German property
valuations and an increase in SRE's average rent per
sqm from EUR 4.13 to EUR 4.18 I'd expect the
valuation to remain at least steady.
Don't forget my
valuation technique isn't actually dependent on values (per
sqm)-- I focus on those simply to highlight the absolute & relative attractions & potential upside of cheap German residential property.
Their property has an average
valuation of around 2500 Euros /
Sqm!
Property Fundamentals: The current
valuation for the core portfolio is EUR 416 per
sqm.
Most companies now provide a headline rent per
sqm figure — I like to use this & tie it back to
valuation per
sqm.