Original-Research: Coreo AG - von GBC AG
Einstufung von GBC AG zu Coreo AG
Unternehmen: Coreo AG
Anlass der Studie: Research Note
Kursziel: 1.85 EUR
Kursziel auf Sicht von: 31.12.2023
Analyst: Cosmin Filker, Marcel Goldmann
H1 2022: Half-year figures in line with expectations; Lower new investments
forecast; Target price reduced to € 1.85 (previously: € 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 €2.82 million (previous year: €1.93 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 €0.70 million. In addition, Coreo AG acquired a logistics property in Delmenhorst in September 2021, which contributes annual rental income of € 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 € 0.00 million (previous year: € 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 € -0.53 million (previous year: € 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 €-0.61 million (previous year: €0.50 million). The increase in operating costs to €3.04 million (previous year: €2.64 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 € 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 € 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 € 2.82 million (net cold rent: € 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 € -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 € 12.50 million, the company could acquire new properties with a total volume of around € 20 million at an LTV of 60% to 65%. In our updated forecasts, we assume the addition of new properties with a volume of € 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 € 30 million, which is below our previous assumptions, in which we had assumed new investments totalling € 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 € 1.85 (previously: € 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
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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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