€82.4m market cap
€18.7 last close
FCR Immobilien is a German real estate investor primarily focussed 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. FCR’s portfolio currently consists of 44 properties with a lettable area of c 200k sqm, of which c 80% represents retail properties.
FCR Immobilien has demonstrated rapid portfolio expansion over the last several years. It has been able to monetise attractive buying opportunities, as illustrated by both the high average rental income yield (11.7% as at end-September 2018) and a solid average return on disposals in 2017 and 2018 ytd at c 28% pa (our estimate excludes rental income). High leverage has been part of this strategy, with net debt to total assets at 72% at end-June 2018 (and likely to increase further) vs the peer average of c 50%. FCR is conducting a technical listing, which should be followed by an IPO.