In this article, I'm going to take a crack at a CRE/Real estate business. This sector has been problematic in Europe, to say the least, in the last few years. I was one of the bulls on Castellum AB, a
International Workplace Group: Looking At What Might Be Missed
Summary
- International Workplace Group plc is transitioning from traditional office leasing to a capital-light, franchise-like model targeting flexible workspace demand.
- Despite double-digit revenue growth and rapid expansion, 1H26 saw only a 1% EBITDA increase and a 44% drop in operating profit, with negative free cash flow.
- Significant lease obligations (~$7.5B) and rising debt, coupled with weak cash conversion, undermine near-term upside despite strong demand for IWG's model.
- I assign a Hold rating with a £1.65/share price target, viewing the current 190p/share valuation as too expensive given unproven turnaround execution.
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