Testa Residencial SOCIMI, S.A. (YTST.MC) fair value

ACCE thesis

Testa Residencial is a Spanish SOCIMI (the country's listed REIT vehicle) that owns and rents apartments, mainly in Madrid and Barcelona, and it is one of the few listed pure plays on Spain's private rental market. Its edge is scale in that niche: at a 429M EUR market cap it is a small listed landlord, yet it controls a portfolio that is hard for a private investor to replicate, and the 92.9% gross margin and 59.0% operating margin show how little cost sits between rent and profit. Revenue growth of 5.8% is the reported near-term driver, with rental demand in Spain's major cities supported by a large share of households renting rather than buying. The stock screens cheaply at a trailing P/E of 5.4, but the ROE of 7.5% and the absence of index membership mean the market is pricing it as a small, illiquid income vehicle rather than a growth story. Worth a deeper look if you want exposure to Spanish residential rents and are prepared to underwrite the portfolio's occupancy, rent reversion and financing costs yourself, since this summary does not capture them.