€82.8m market cap

€23 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 is stepping up its ambition to benefit from favourable macro factors and the clear opportunity in real estate with development potential in non-core German cities. The asset base (stock book value up 15% in H1 at €114m) has seen a sharp acceleration in growth with c 900 units acquired since May (under 1,200 units in total at the start of 2018). The
shortfall in H1 results (revenue and adjusted EBIT down by a third) was, as expected, a matter of timing (likely high-margin asset sales will be H2 oriented), so guidance of a rise in full-year profit is maintained, albeit on lower revenue. Solid finances should allow a further generous dividend (6.9% yield 2018e).

Share price graph
Price performance
Actual 6.5 5.5 (13.8)
Relative* 2.4 (5.2) (10.7)
52-week high/low €28.0/€20.6
*% relative to local index
Key management
Igor Christian Bugarski CEO
André Speth CFO