Noratis

DB: NUVA

€71.7m market cap

€19.9 last close

Noratis is a specialised asset developer, acquiring residential rental income-producing assets in secondary locations with optimisation potential. Investing in the asset base and improving the tenant mix creates value, which Noratis exploits during well-structured asset sales, either through individual or block sales.

Investment summary

Noratis continued expanding its portfolio in 2019 and plans further asset acquisitions in 2020. However, it also expects delays in project exits and has thus issued subdued full-year guidance. Over the longer term, Noratis stresses that asset sales will remain the main revenue and earnings driver while portfolio growth will be supported by equity funding from its new major shareholder. Noratis is committed to distributing 50% of its earnings to shareholders, but due to COVID-19 part of this year’s amount will be allocated to a dividend distribution reserve and a social fund. The proposed dividend of €0.80 per share (or 33% of FY19 net income) represents a yield of 4.1%.

Share price graph
Price performance
%
1m
3m
12m
Actual 0.3 5.9 (3.4)
Relative* (3.0) (12.3) (13.6)
52-week high/low €22.3/€15.4
*% relative to local index
Key management
Igor Christian Bugarski CEO
André Speth CFO