Original-Research: CR Capital Real Estate AG (von GBC AG): Buy
October 30 2009 - 7:20AM
DPA AFX News (German)
Original-Research: CR Capital Real Estate AG - von GBC AG
Aktieneinstufung von GBC AG zu CR Capital Real Estate AG
Unternehmen: CR Capital Real Estate AG
ISIN: DE000A0WMQ53
Anlass der Studie:Research Studie (Anno) english version
Empfehlung: Buy
Kursziel: 2.09 EUR
Kursziel auf Sicht von: end FY 2010
Letzte Ratingänderung:
Analyst: Cosmin Filker, Felix Gode
Business activity of CR Capital Real Estate is the management of
first-class residential and commercial properties at very good locations in
the greater Berlin area. A important strategic focus are residential
properties. Thus the company is to become the first 'Wohn-REIT' in Germany.
Residential properties usually generate continuous cash flows and are less
volatile which should be particularly interesting for investors, in our
opinion.
All in all, due to demographically positive conditions the Berlin real
estate market performs well in spite of the current economic situation.
Higher purchasing power of the Berlin population as well as an unchanged
high immigration rate is opposed to limited space of living. As a
consequence the financial crisis had only little effect on the Berlin real
estate market which was even characterized by a slight increase of rents.
CR Capital Real Estate is well positioned in the top regions of Berlin
which represents a good basis for future success. Due to high demand three
properties are to be sold, at the same time the total lettable space should
be expanded to 6,800 sqm by the end of the year. Due to the strategic focus
of the company which is planning to obtain the REITstatus, investment focus
of CR Capital Real Estate AG will be in line with legal requirements. In
this process the company intends to max out the allowed portion of
residential area in order to expand a balanced commercial and residential
portfolio. Rental income from residential properties is considered as
relatively stable and offers additional security for investors.
Moreover, future investments are partly planned to be done with credit
capital. Law requires a minimum equity rate of 45 % for REIT companies.
Implying an equity rate of 45 % we expect a total portfolio of 6,800 sqm by
the end of 2009 as well as 12,900 sqm (end of 2010). Based on that we
forecast an increase of rental income of EUR 0.52 m (2009) and EUR 1.70 m
(2010). Sales revenues of the three objects just mentioned are expected to
have a positive effect on total income in the current financial year 2009
as well. Consequently, we expect total income amounting to EUR 2.32 m
(2009), respectively EUR 4.38 m (2010). In addition we see in 2009 a net
profit of EUR 1.50 m and in 2010 of EUR 2.06 m as realistic.
Based on our DCF model we have calculated a fair value per share of EUR
2.09. With a current price level of EUR 1.28 we see a strong
undervaluation. Our Rating is 'BUY'.
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/10898.pdf
Kontakt für Rückfragen
Jörg Grunwald
Vorstand
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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