Last close As at 05/08/2026
—
— 0.00 (0.00%)
Market capitalisation
—
Research: Financials
FCR Immobilien held a real estate portfolio worth c €312m at end-June 2020 (with retail properties making up 76%). Rental income (including hotel revenue) improved by c 30% y o y to €12.5m in H120, supported by H219 acquisitions. Management now guides to a rental and hotel revenue increase of 31% y-o-y to €28.3m in FY20 (not accounting for further acquisitions). Moreover, it expects a property disposal volume of at least €30m this year, which implies a strong pick-up in activity in H220 vs H120. Consequently, management expects FY20 pre-tax profit to reach €11.1m (€11.9m in FY19), which implies over 50% growth in H220 vs €4.4m in H120.
FCR Immobilien |
Seeking new funding to grow its portfolio
|
Real estate |
Deutsches Eigenkapitalforum 2020
2 November 2020 |
Share price graph
Share details
Business description
Bull
Bear
Analyst
FCR Immobilien is a research client of Edison Investment Research Limited |
||||||||||||||||||||||||
FCR Immobilien held a real estate portfolio worth c €312m at end-June 2020 (with retail properties making up 76%). Rental income (including hotel revenue) improved by c 30% yoy to €12.5m in H120, supported by H219 acquisitions. Management now guides to a rental and hotel revenue increase of 31% y-o-y to €28.3m in FY20 (not accounting for further acquisitions). Moreover, it expects a property disposal volume of at least €30m this year, which implies a strong pick-up in activity in H220 vs H120. Consequently, management expects FY20 pre-tax profit to reach €11.1m (€11.9m in FY19), which implies over 50% growth in H220 vs €4.4m in H120.
Lower operating expenses assist H120 results
As well as significant growth in rental revenue, FCR was able to reduce personnel and material expenses by c 14% y-o-y in H120. While financing costs increased by c 23% y-o-y on the back of additional debt to finance portfolio growth, we note that FCR’s average effective interest rate was down for both property-level debt and issued bonds in H120. The company’s funds from operations excluding property disposal/revaluation gains (FFO1) turned positive and reached €2.2m in H120, while FFO2 stood at €2.8m. Net income in H120 declined by c 20% y-o-y to €3.8m, as previous year figure included €8.3m unrealised property revaluation gains against just €0.9m in H120. FCR has so far sold five properties this year, with a further three to five properties likely to be sold soon, according to management.
New share issue and change of listing segment
FCR plans to expand its property portfolio by a further €160m by end-2021. While it launched a bond offering with a volume up to €30m in March 2020 (which is still ongoing) to fuel property acquisitions, management also announced that FCR will issue up to 1.3m new shares (with a rights issue at a 7:1 ratio) targeting gross proceeds of up to €14.1m (though the capital raise was recently postponed). On 30 October 2020 the company moved from Scale to the General Standard segment.
Valuation: Trading at premium to EPRA NAV
FCR’s EPRA NAV per share increased from €10.93 at end-2019 to €11.05 at end-June 2020, which, together with the €0.30 per share dividend payment, implies a NAV total return of c 3.8% in H120. Based on last reported NAV, FCR is currently trading at a P/NAV multiple of 1.02x, which represents a 20% premium to the broader peer average (but a 24% discount to its closest peers).
|
Edison estimates
Note: *Funds from operations – defined as net profit before D&A, property revaluation and disposal gains. **FFO1 plus property disposal gains. ***EPRA NAVPS. ****Edison estimates. |
|
||||||||
|
||||||||
Mobotix develops and produces intelligent camera and integrated video systems primarily for security applications. Management has a five-year plan, transitioning the balance of the group from hardware towards software and services to provide a higher-margin recurring revenue stream. The recent year-end trading update was reassuringly positive.