DeA Capital

MI: DEA

€404.7m market cap

€1.32 last close

DeA Capital, a De Agostini group company, is Italy’s leading alternative asset manager of real estate, private equity and NPLs. It had alternative assets under management of c €11.4bn in Q318 and the holding company net financial position was €140.3m.

Investment summary

Alternative assets under management increased to €11.4bn in Q318, driven by new fund launches, with fees up 3.4% ytd. The holding company net financial position was very strong at €140.3m (€0.55 per share, or more than 40% of the share price), continuing to increase with net distributions from private equity fund co-investments. NAV per share was €1.84, up from €1.80 (adjusted for dividends subsequently paid) at the start of the year, but down from €1.87 at end-Q218. We view positively DeA’s plans to cancel 40m of the 52.9m treasury shares acquired through its share repurchase programme, although this will not impact NAV or EPS. DeA has also increased its ownership of its main real estate management subsidiary to 94% from 64.3%, at book value, using cash resources. We believe the transaction strengthens the AAM platform and increases its earnings contribution, at an attractive price, while simplifying the group structure.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2016A 80.8 N/A 12.7 4.7 28.1 N/A
2017A 72.8 N/A (25.9) (4.5) N/A N/A
2018E 102.4 N/A 45.7 4.0 33.0 N/A
2019E 74.4 N/A 20.0 5.9 22.4 N/A
Last updated on 21/02/2019
Industry outlook

Low interest rates support demand for alternative assets, while fund maturities and other divestments are supporting cash flow for reinvestment and distributions to shareholders, even after meeting outstanding investment commitments.

Last updated on 21/02/2019
Share price graph
Balance sheet
Forecast net debt (€m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (0.6) 4.8 (5.3)
Relative* (3.4) (3.1) 6.2
52-week high/low €1.6/€1.2
*% relative to local index
Key management
Lorenzo Pellicioli Chairman
Paolo Ceretti CEO
Manolo Santilli CFO
Anna Majocchi Investor Relations Manager