NuWays AG Recommends Holding S Immo AG Amid Restructuring

On August 30, 2024, NuWays AG released an updated research report on S Immo AG, maintaining a "Hold" recommendation and setting a new target price of EUR 24.00 for the shares within the next 12 months. S Immo AG recently reported its H1 2024 results, which showed significant top-line growth and improved operating profitability.

For Q2 2024, S Immo AG's sales increased by 15% year-over-year to €186 million, mainly driven by a 19.2% rise in rental income to €112 million following several major acquisitions in Austria and the Czech Republic. Additionally, the company's hotel segment saw a 7.7% increase in revenues, totaling €33.8 million. The Funds From Operations (FFO I) per share increased by 47% year-over-year, indicating operational leverage improvements.

S Immo AG continued its property disposal program in Germany, reducing its German portfolio from €1.25 billion 18 months ago to €300 million, aiming to reinvest these funds into higher-yielding properties in the CEE region. The company expects to complete the disposal of the remaining German properties by H1 2025.

An Extraordinary General Meeting is expected in autumn to resolve a potential squeeze-out and delisting from the Vienna Stock Exchange. Despite the strategic shifts, NuWays AG believes that holding the stock remains prudent, adjusting their target price to EUR 24.00.