RCM Beteiligungs

DB: RCM

€29.4m market cap

€2.1 last close

RCM Beteiligungs is primarily a residential property developer focusing on the refurbishment of assets in the area of Dresden, Saxony. Additionally it invests in financial assets. RCM acquires low to medium value residential multi-family homes and modernises them. The objective is to achieve rent increases and an appreciation of the asset value. RCM realises value by selling the asset and re-investing in new real estate assets and opportunistic financial participations. While the real estate business accounted for 89% of revenues and represented 70% of the balance sheet total of €55m in 2016, the financial holdings and participation business represented 11% of revenues and tripled in value to €5.5m.

Investment summary

RCM Beteiligungs continues to please with H119 PBT of €4.1m comfortably exceeding management’s guidance of an improvement in full-year PBT (€2.9m+). Although the driver may have been a bumper c €10m disposal in Q1, the second quarter also saw a y-o-y step-change in PBT, boosted by markedly lower finance costs thanks to interim reinvestment of asset sale proceeds. Even if 2019 guidance has not been updated, favourable macro factors and scope for efficiencies and asset development support RCM’s positive outlook, as does its commitment to re-build its portfolio (both commercial and residential), as confirmed by two recent deals of size.

Share price graph
Price performance
%
1m
3m
12m
Actual (0.9) (0.9) (3.7)
Relative* (7.5) (3.2) (5.7)
52-week high/low €2.3/€2.1
*% relative to local index
Key management
Reinhard Voss Vorstand