FCR Immobilien

DB: FC9

€100.6m market cap

€11 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 seeks to acquire 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. A key part of its strategy is to sell properties where asset management plans are mature, with capital recycled into new opportunities. As such, gains on disposal are a significant part of returns. High leverage is part of the strategy, with ECB’s monetary easing providing relatively cheap debt funding. The portfolio value reached c €300m at end-2019 and FCR targets a portfolio of €400–450m.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2018A 37.2 10.1 3.0 16.9 65.1 N/A
2019A 49.7 18.5 11.9 146.0 7.5 N/A
2020E N/A N/A N/A N/A N/A N/A
2021E N/A N/A N/A N/A N/A N/A
Industry outlook

FCR is well positioned within its market niche outside of major German cities. It is an experienced player in a largely semi-professional market (though with some close competitors). Given its high exposure to tenants such as food retailers and neighbourhood stores, it expects a relatively mild impact from the COVID-19 lockdown, with deferred rental revenue in April to June 2020 of c €150k per month and aggregate maximum loss in rental revenue of c €200k (1% of FY19 rental revenue). No rent losses were reported to date. Its hotel operations in Italy are also likely to be impaired.

Last updated on 02/07/2020
Share price graph
Price performance
%
1m
3m
12m
Actual 2.8 17.0 13.4
Relative* (2.0) (11.2) 12.7
52-week high/low €13.2/€9.3
*% relative to local index
Key management
Falk Raudies CEO
Alexander Lauterbach CFO

Content on FCR Immobilien