Original-Research: Coreo AG (von GBC AG): BUY

^

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: 2.35 EUR
Kursziel auf Sicht von: 31/12/2021
Letzte Ratingänderung:
Analyst: Cosmin Filker; Marcel Goldmann

Extensive acquisition pipeline available, Further strong sales and earnings
growth from 2021 on expected; target price: EUR 2.35, rating: Buy

Despite the visible expansion of the real estate portfolio that continued
in the first half of 2020, Coreo AG's rental income only showed a constant
development to EUR 1.55 million (previous year: EUR 1.64 million). In the
case of the NRW portfolio acquired in 2019, with properties in Wuppertal
and Bielefeld, the transfer of benefits and burdens took place on 1 May
2020, meaning that the rental income generated from this portfolio was only
included for a two-month period. Together with the previously acquired
locations in Gelsenkirchen and Lünen, the NRW portfolio generated gross
rental income of EUR 0.35 million in the first half of 2020. In contrast,
gross rental income in Göttingen fell by EUR 0.4 million. This can be
explained by the partial sale of the portfolio and the planned increase in
vacancies in the run-up to extensive modernisation measures.

The scheduled sale of properties in the Göttingen portfolio and, to a
lesser extent, of properties in the Hydra portfolio caused a significant
increase in sales proceeds to EUR 5.77 million (previous year: EUR 0.92
million). With a book value disposal of EUR 5.28 million, Coreo AG posted a
disposal result of EUR 0.49 million (previous year: EUR 0.45 million) for
the first six months of 2020, whereby only the sale of the property in
Viersen from the Hydra portfolio made a contribution to earnings for EUR
0.7 million. The Göttingen portfolio had already been written up to the
level of the selling price at the end of 2019.

Based on the constant development of rental income and the sales result,
which was also at the previous year's level, Coreo AG is reporting an
overall improvement in operating earnings. At EUR -0.10 million (previous
year: EUR -0.31 million), EBIT was just below break-even. Although Coreo AG
achieved a reduction in the cost of materials due to lower maintenance
measures, recruitment of new employees led to higher personnel expenses.

Coreo AG had originally planned to issue a corporate bond with a volume of
EUR30 million to finance future project and property acquisitions and to
repay the comparatively high-interest warrant bond (coupon: 10%). Since a
volume of EUR10 million had been placed by the end of the subscription
period, the company would not have been able to implement its investment
plan and therefore cancelled the public bond issue. As a substitute, a
private placement in the amount of the original bond volume of EUR 30
million is to be carried out. According to the company, this should be
successfully placed in the coming weeks. After repayment of the warrant
bond with an outstanding volume of EUR15 million, the company could use
around EUR15 million to implement concretely planned real estate
acquisitions. With an assumed LTV (loan-to-value) of 66%, new real estate
objects could be acquired with a total volume of up to EUR50 million.
According to the company, exclusivity agreements currently exist for
properties worth more than EUR40 million.

In our revenue and earnings forecasts for 2020, we had assumed new
investments totalling around EUR25 million in addition to the existing
portfolio. Even if the company is able to implement the planned property
acquisitions promptly following a successful private placement, these are
unlikely to have a relevant impact on revenue and earnings until next year.
In the case of the recently acquired, fully-let logistics property in
Haßloch with a total investment volume of EUR3.4 million, the change in
benefits and burdens will not take place until the turn of the year. The
property with a rental area of around 10,000 sqm is leased to a sporting
goods manufacturer until mid-2024.

As we are postponing, to a large extent, the additional revenue and
earnings from the originally planned EUR25 million investment until the
coming financial year, we are adjusting our forecasts for the current
financial year 2020. As a result of reduced rental income, we now expect
EBIT of EUR 3.10 million (previously: EUR 5.51 million). For the coming
years, we continue to plan investments of EUR 40 million each and,
therefore, our forecasts remain largely unchanged.

In our DCF valuation model, which was slightly adjusted compared to our
last research study, we have set a new price target of EUR 2.35
(previously: EUR 2.60). Based on the current price level of EUR 1.42 there
is a high upside potential and we continue to assign the BUY rating. Our
BUY rating is supported by the published NAV, which amounted to EUR1.88 per
share at 31 December 19.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/21787.pdf

Kontakt für Rückfragen
Jörg Grunwald
Vorstand
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
++++++++++++++++
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (4,5a,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung.htm
+++++++++++++++
Date (time) completion: 02.11.20 (3:00 pm)
Date (time) first distribution: 03.11.20 (10:00 am)

-------------------übermittelt durch die EQS Group AG.-------------------

Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung
oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.

°

Quelle: dpa-AFX