GBC AG: Coreo AG | Rating: BUY

Original-Research: Coreo AG - von GBC AG

Einstufung von GBC AG zu Coreo AG

Unternehmen: Coreo AG
ISIN: DE000A0B9VV6

Anlass der Studie: Research study (Anno) 1 Empfehlung: BUY
Kursziel: 1.30 EUR
Kursziel auf Sicht von: 31.12.2024
Letzte Ratingänderung:
Analyst: Cosmin Filker, Marcel Goldmann

- FY 2022 was marked by portfolio optimisation - Postponed investments should be realised in 2024 - Break-even expected from 2024
 
In the past financial year 2022, Coreo AG's focus was on active asset management of the existing portfolio, whereas no new investments were made for the first time since the start of real estate-related business activities. In particular, the delay of the acquisition of the largest portfolio in the company's history, which had been planned since 2021, was responsible for this. In this respect, the focus of business activities was on extensive refurbishments and conversion measures at existing properties in Kiel, Wetzlar or Bruchsal.
 
Nevertheless, a significant increase in gross rental income to € 5.97 million (previous year: € 4.35 million) was achieved, in particular due to the first full-year inclusion of properties acquired in 2021. In addition, rental increases were achieved in the existing portfolio and vacancies in the refurbished properties were reduced. On the other hand, proceeds from disposals fell to €2.89 million (previous year: €10.32 million). These primarily include the complete sale of the Mannheim portfolio and some properties in the Göttingen portfolio. As a result, total income of €10.38 million (previous year: €16.53 million) was below the previous year's level, but above our expectations (GBC forecast: €7.99 million) due to higher than expected proceeds from disposals.  
The decline in earnings is also reflected in the drop in EBIT to € 0.98 million (previous year: € 2.84 million). This was lower than we expected due to higher maintenance measures (GBC forecast EBIT: € 2.63 million). Based on this, Coreo AG was once again unable to reach break-even at the level of the after-tax result. At present, the company's rental income is still too low to cover its operating expenses, but it is still not sufficient to cover its financial expenses.  
The current P&L picture should only change with the expected expansion of the rental portfolio. One possible property acquisition that is likely to have a relevant influence on the company's revenue and earnings development is the transfer of the so-called Spree East portfolio, for which a purchase agreement was already reached in 2021. According to the company's announcement at the time, the portfolio comprises a total of 1,341 flats and 15 commercial units, which would make it the largest acquisition in the history of Coreo AG. Although the company is currently still in negotiations, we assume that the acquisition will not take place until the coming financial year 2024. Likewise, an exclusive agreement for the purchase of a portfolio in Hagen/Rostock with an investment volume of € 2.5 million was concluded in July 2022.
 
Assuming the expected addition of these portfolios and after taking into account further investments in the coming financial years, rental income, which will then be the most important earnings variable, should gradually increase to € 6.53 million (2023e), € 9.56 million (2024e) and € 12.36 million (2025e). From the coming financial year onwards, these should be enough to reach the break-even point at the level of the after-tax result.  
Within the framework of our DCF valuation model, we have determined a new target price of € 1.30 (previously: € 1.85). Compared to our previous valuation, we have made a significant forecast adjustment. On the one hand, we expect a slower build-up of the portfolios. On the other hand, rental income is more important than in our previous forecasts. Compared to the trading business, this is accompanied by lower revenues, but at the same time there should be higher profitability. The weighting of capital costs is also shifting towards debt capital, which has led to a reduction in the WACC. We continue to give the rating BUY.  

Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/27345.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: (4,5a,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung +++++++++++++++
Date and time of completion: 14.07.2023 (08:47 am) Date and time first distribution: 14.07.2023 (11:30 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.