FCR Immobilien

DB: FC9

€104.3m market cap

€11.4 last close

FCR Immobilien is a German real estate investor primarily focused on small and mid-sized properties in tier two domestic locations. It looks for special situations translating into bargain purchases. Subsequent measures are aimed at improving rental income generation.

Investment summary

FCR invests mainly in retail property, targeting total returns from recurring rental income and capital gains. It acquires properties at attractive prices and actively manages the assets to improve income by reducing voids and increasing rent levels and capital values with minimal or no capex. It seeks to sell properties where asset management plans are mature, with capital recycled into new opportunities. High initial loan to value at property level and high loan amortisation rates are part of the strategy, with ECB’s monetary easing providing relatively cheap debt funding. FCR’s portfolio value reached c €312m at end-June 2020.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2018A 37.3 7.6 2.8 35.1 32.5 N/A
2019A 50.1 18.5 11.9 145.9 7.8 N/A
2020E 52.4 18.5 10.6 94.6 12.1 N/A
2021E 72.4 24.2 14.9 123.8 9.2 N/A
Industry outlook

The German property investment market was affected by COVID-19 as transaction volumes declined by over 47% q-o-q in Q220 followed by a modest 5.3% q-o-q rebound in Q320 (-38% vs Q319), based on JLL data. FCR has sold five properties this year and expects a further three to five to be sold soon. FCR continues to focus on portfolio expansion (targeting the acquisition of €160m in additional properties in 2021) which it intends to fund via, among others, a new share issue with gross proceeds of up to €14.1m. In FY20 management expects pre-tax profit to reach €11.1m (€11.9m in FY19) and a property disposal volume of at least €30m.

Last updated on 30/11/2020
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Share price graph
Price performance
%
1m
3m
12m
Actual 1.8 0.9 7.5
Relative* (11.5) (1.7) 7.1
52-week high/low €13.2/€9.3
*% relative to local index
Key management
Falk Raudies CEO
Alexander Lauterbach Head of finance

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