Original-Research: Coreo AG (von GBC AG): BUY
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Original-Research: Coreo AG - von GBC AG
Einstufung von GBC AG zu Coreo AG
Unternehmen: Coreo AG
ISIN: DE000A0B9VV6
Anlass der Studie: Research Note
Empfehlung: BUY
Kursziel: 1.85 EUR
Kursziel auf Sicht von: 31.12.2023
Letzte Ratingänderung:
Analyst: Cosmin Filker, Marcel Goldmann
H1 2022: Half-year figures in line with expectations; Lower new investments
forecast; Target price reduced to EUR 1.85 (previously: EUR 2.15); Rating: BUY
In the first six months of 2022, Coreo AG's earnings development was
largely in line with our expectations. This applies in particular to rental
income, which increased significantly by 45.9% to EUR2.82 million (previous
year: EUR1.93 million). This increase primarily reflects the expansion of
their property portfolio in connection with the acquisitions made the
previous year. In July 2021, two production sites and the administrative
headquarters of a listed German automotive supplier were acquired,
resulting in annual rental income of EUR0.70 million. In addition, Coreo AG
acquired a logistics property in Delmenhorst in September 2021, which
contributes annual rental income of EUR 0.50 million.
We had also anticipated a decline in the disposal result in advance.
Following Coreo AG's extensive disposals in the 2021 financial year, a
small number of properties from the Mannheim and Göttingen portfolios were
sold in the reporting period. As the proceeds from the sales were at book
value level, the sales proceeds amounted to EUR 0.00 million (previous year:
EUR 0.31 million). In the run-up to the transactions, the book values of
their properties in their Mannheim portfolio, which has now been completely
sold, were adjusted to the low sales price and a corresponding reduction in
value of EUR -0.53 million (previous year: EUR 0.40 million) was recognised in
profit or loss.
The lack of gains from disposals and the significantly lower valuation
result than in the previous year were mainly responsible for the decline in
EBIT to EUR-0.61 million (previous year: EUR0.50 million). The increase in
operating costs to EUR3.04 million (previous year: EUR2.64 million), which is
particularly related to the capital increase carried out in May 2022, also
contributed to the decline in EBIT.
With the publication of the half-year figures, the Coreo management
confirmed the previous guidance, according to which rental income of EUR 3.8
million is to be generated on a full-year basis. The guidance issued in the
annual report, according to which the portfolio volume should increase to
well over EUR 100 million by the end of the year, was not addressed in the
half-year report. Until now, the target property volume communicated by the
company as of 31 December 2022 took into account the addition of the
largest property portfolio in the company's history. In July 2021, Coreo AG
reported on the intended acquisition of a portfolio with a total property
portfolio of 1,341 flats and 15 commercial units. It can be assumed that
the portfolio will not be added in the current financial year.
With a view to the level of rental income, the guidance should be easily
achievable after gross rental income of EUR 2.82 million (net cold rent: EUR
2.23 million) was already achieved in the first half of the year. For the
second half of 2022, we do not assume any significant sales activities and
therefore assume a balanced sales result for the full year 2022. However,
we expect a significant improvement in the valuation result, which amounted
to EUR -0.53 million in the first half of 2022 due to the valuation
adjustment of the sold Mannheim portfolio. This is due to the successful
transfer of properties to new tenants and the implemented rent increases.
Based on the current liquidity of EUR 12.50 million, the company could
acquire new properties with a total volume of around EUR 20 million at an LTV
of 60% to 65%. In our updated forecasts, we assume the addition of new
properties with a volume of EUR 20 million by the financial year 2023, which,
in addition to the expected addition of the already agreed large portfolio,
should lead to a visible increase in rental income. For the 2024 financial
year, we expect new investments of EUR 30 million, which is below our
previous assumptions, in which we had assumed new investments totalling EUR
80 million for the period 2022 to 2024. This explains the lower rental
income forecasts for the coming financial years.
Within the framework of our adjusted DCF valuation model, we have
determined a new price target of EUR 1.85 (previously: EUR 2.15). On the one
hand, the reduction of our forecasts led to a lower target price. In
addition, the increase in the WACC as a result of the higher risk-free
interest rate also had the effect of reducing the target price. We continue
to assign the BUY rating.
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/25713.pdf
Kontakt für Rückfragen
GBC AG
Halderstrasse 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung
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Date and time of completion: 26.10.22 (08:31 am)
Date and time first distribution: 26.10.22 (10:00 am)
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