Original-Research: S Immo (von NuWays AG): Kaufen
Source: EQSClassification of
Company
ISIN: AT0000652250
Reason for the research: Update
Recommendation: Kaufen
from:
Target price:
Target price on sight of: 12 Monaten
Last rating change:
Analyst:
FY ’23 showing strong rental growth - Strategy update // chg.
S IMMO released FY ’23 figures, showing strong operational results as well as a lower-than-expected devaluation of the real estate portfolio.
FY rental income came in at € 203m (eNuW: € 193m; eCons: € 191m), up 30%
yoy thanks to acquisitions to the tune of € 1bn, mainly in
Against this backdrop, FFO grew by 52% yoy to € 99.7m (eNuW: € 101m, eCons: € 84m), mainly driven by the improved top-line as well as operating leverage on the G&A level. Yet, despite the strong operations, the result from property valuations again came in negative at € -109m, which was however below market expectations (eNuW: € -148m, eCons: € -134m). Moreover, when taking a closer look at the regional split, one can see that especially the German portfolio saw a strong devaluation (€ -118m) while the CEE portfolio even gained value (€ 37m), although part of this was due to purchase price adjustments. Nonetheless, this once more supports management’s decision to shift the strategic focus towards the higher yielding Eastern European office market.
In fact, S IMMO recently published a strategy update, stating that the
whole German portfolio is now included in the disposal program, which
initially only included the German residential portfolio. On top of this,
the company aims to gradually streamline the portfolio, focusing on the
divestment of small and medium-sized office properties with limited
development potential, possibly leading to a market exit in
Based on continued strong operations and metrics as well as the possibility of a delisting offer looming, S IMMO remains a BUY with a new PT of € 19.00 (old: € 18.40) based on NTA and DDM.
You can download the research here:
http://www.more-ir.de/d/29267.pdf
For additional information visit our website
www.nuways-ag.com/research.
Contact for questions
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden: www.nuways-ag.com/research.
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148
-------------------transmitted by EQS Group AG.-------------------
The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.