| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 82.37 | -1 |
| Intrinsic value (DCF) | 47.95 | -43 |
| Graham-Dodd Method | 58.01 | -31 |
| Graham Formula | 41.38 | -50 |
Selectirente (SELER.PA) is a French real estate investment trust (REIT) specializing in retail properties, managed by Sofidy and operating as a subsidiary of Tikehau Capital. The fund focuses on acquiring and managing commercial properties in prime city center and suburban locations, particularly those near shopping malls, primarily in France. With a market capitalization of approximately €345.6 million, Selectirente offers investors exposure to stable retail real estate assets, benefiting from high foot traffic and long-term lease agreements. The company’s portfolio is designed to generate consistent rental income, supported by a dividend yield of approximately 5.8% (based on a €4 dividend per share). As part of the broader REIT - Retail sector, Selectirente plays a key role in France’s commercial real estate market, leveraging strategic property acquisitions and active asset management to deliver shareholder value.
Selectirente presents a relatively low-risk investment opportunity within the retail REIT sector, supported by its stable rental income streams and strategic property locations. The company’s low beta (0.101) suggests minimal volatility compared to broader markets, making it attractive for conservative investors. However, risks include exposure to France’s economic conditions and potential retail sector disruptions (e.g., e-commerce competition). The fund’s strong net income (€28.6 million in FY 2024) and consistent dividend payouts (€4 per share) underscore its financial health, though high leverage (total debt of €196.6 million) warrants monitoring. Investors should weigh its defensive positioning against limited growth prospects in a mature market.
Selectirente’s competitive advantage lies in its niche focus on high-traffic retail properties in France, which provides stable occupancy rates and rental income. Unlike diversified REITs, its specialized portfolio minimizes exposure to underperforming asset classes. The backing of Tikehau Capital enhances its financial stability and access to capital for acquisitions. However, its small scale (€345.6 million market cap) limits bargaining power compared to larger peers like Unibail-Rodamco-Westfield. The fund’s conservative leverage (debt-to-equity ratio of ~0.57) is a strength, but its lack of geographic diversification increases vulnerability to localized economic downturns. Competitors with pan-European portfolios may offer better risk-adjusted returns. Selectirente’s edge is its localized expertise and Sofidy’s active management, though it must contend with rising interest rates and retail sector headwinds.