Activity Stream
GBC AG: Coreo 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: EUR 1.00
Letzte Ratingänderung:
Analyst: Cosmin Filker, Marcel Goldmann
H1 2023: Large portfolio acquisitions to come in 2024; EBIT break-even
expected in 2024; price target: € 1.00; rating: BUY
In the first six months of 2023, Coreo AG was able to increase rental
income to € 3.17 million (previous year: € 2.82 million). As there were no
property additions in both the 2022 financial year and the current 2023
financial year, the 12.7% increase in gross rental income was achieved on
the same property basis. Portfolio optimisations carried out, such as the
property handover in Kiel in the past 2022 financial year or the conclusion
of a long-term rental agreement with the city of Wetzlar, have increased
the revenue base, from which Coreo AG benefited in the first half of 2023.
In addition, vacancies were already reduced in the past financial year and
rent increases were implemented in some cases. However, part of the
increase in gross rents is also due to the current market-related rise in
ancillary costs, which resulted in a significant increase in advance
operating cost payments of 44.1% to € 0.84 million (previous year: € 0.59
million).
Total operating costs of € 3.10 million (previous year: € 3.04 million)
remained roughly at the previous year's level. Within costs, the cost of
materials in particular increased to € 1.79 million (previous year: € 1.29
million). This was partly due to higher ancillary operating costs and
partly due to maintenance and modernisation expenses, which relate in
particular to the properties in Wetzlar, Delmenhorst and Göttingen.
However, the increase in the cost of materials was offset by a decrease in
personnel expenses and other operating expenses (including lower legal and
consulting costs). At € -0.44 million (previous year: € -0.61 million),
EBIT in the first six months of 2023 was therefore also higher than the
previous year's figure.
We have prepared our forecasts on the basis of the current property
portfolio. In addition, we also assume property acquisitions for the coming
financial years, which will both have an impact on the company's rental
income and, as part of the value-creating strategy, result in possible
valuation income.
In the first six months of 2023, Coreo AG generated gross rental income of
€ 3.17 million. With the exception of the sale of the 119 residential units
in the 'Hagenweg' property, the property portfolio is unchanged for the
second half of 2023, meaning that comparable gross rental income is likely
to be generated in the second half of the year. The loss of rental income
from 'Hagenweg' of around € 0.20 million (GBC estimate) will be limited, as
this will not occur until the fourth quarter of 2023. Compared to our
previous forecast (see forecast dated 14 July 2023), we are nevertheless
adjusting the expected rental income slightly more to € 6.12 million
(previously: € 6.53 million).
This adjustment is primarily due to the delay in the purchase of the
Hagen/Rostock portfolio, for which the purchase price (total investment
volume: € 2.5 million) has already been finalised. We had previously
expected to acquire the property in the second half of 2023. As things
stand, however, the property will not be acquired until the coming
financial year. In addition, the transfer of the Spree-Ost portfolio, for
which a purchase agreement has been in place since 2021, is planned for the
coming 2024 financial year. This portfolio comprises 1,341 flats and 15
commercial units and, as the largest acquisition in Coreo's history, would
have a significant impact on the company's revenue and earnings
performance. As a precautionary measure, we have postponed the acquisition
date to the second half of 2024 (previously: first half of 2024) and are
therefore also reducing the expected rental income for 2024 to € 8.22
million (previously: € 9.56 million). This effect is not relevant for the
2025 financial year; the lower expected rental income of € 12.15 million
(previously: € 12.36 million) expected in this financial year is solely a
result of the sale of 'Hagenweg'.
The book loss of € 0.61 million from the sale of the properties on
'Hagenweg' in Göttingen was recognised in full in the first half of 2023,
meaning that no further negative effects are expected for the second half
of the year. In our previous forecasts, we did not anticipate any valuation
losses; on the contrary, we assumed valuation gains due to the investments
in the existing portfolio. In the updated forecast, we have taken into
account both the book loss and conservatively assumed slightly lower book
gains on the existing portfolio. Accordingly, the company should report a
negative EBIT of € -0.12 million in the current 2023 financial year
(previously: € 2.18 million). With the expected strong increase in rental
income, in particular due to the addition of the two already fixed
portfolios, EBIT break-even should be achieved sustainably from the coming
2024 financial year.
As part of our DCF valuation model, we have determined a new price target
of € 1.00 (previously: € 1.30). The price target reduction is solely a
consequence of the forecast adjustment. We continue to assign a BUY rating.
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/28337.pdf
Kontakt für Rückfragen
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: (5a,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung
+++++++++++++++
Date and time completion (german): 17.11.23 (07:55 am)
Date and time first distribution (german): 17.11.23 (10:30 am)
Date and time completion (english): 20.11.23 (08:02 am)
Date and time first distribution (english): 20.11.23 (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.
GBC AG: Coreo 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 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
++++++++++++++++
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.
GBC AG: Coreo 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: 1.85 EUR
Kursziel auf Sicht von: 31.12.2023
Letzte Ratingänderung:
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
Kontakt für Rückfragen
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: (5a,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung
+++++++++++++++
Date and time of completion: 26.10.22 (08:31 am)
Date and time first distribution: 26.10.22 (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.
GBC AG: Coreo AG: Management Interview
Original-Research: Coreo AG - von GBC AG
Einstufung von GBC AG zu Coreo AG
Unternehmen: Coreo AG
ISIN: DE000A0B9VV6
Anlass der Studie: Management Interview
Empfehlung: Management Interview
Letzte Ratingänderung:
Analyst: Cosmin Filker; Marcel Goldmann
In February 2022, Coreo AG announced the change of the management board. As
the successor of the previous board member Marin Marinov, Dennis Gothan is
the new CEO of Coreo AG. Mr Gothan will be supported by the new Chief
Financial Officer Michael Tegeder. Recently, the company also announced the
planned implementation of a capital increase. The rights issue, which will
take place between 25 April and 9 May 2022, is expected to raise gross
proceeds of up to EUR 5.51 million through the issue of 5.01 million new
shares. GBC analyst Cosmin Filker spoke to the new board of directors.
GBC AG: Mr Gothan, can you briefly say something about your background and
the background of your fellow board member Michael Tegeder?
Dennis Gothan: I am a real estate specialist from the ground up and worked,
among other things, for eight years as a real estate manager with a focus
on letting and transaction management for Strabag PFS. During this time, I
also obtained my certification as a transaction manager through EBS. And
after I received the offer to work for Coreo, I took a look at the company
and recognised its potential. I am sure that I will be able to contribute
my skills and impulses optimally in Coreo and in my function.
Furthermore, I am very happy that we were able to win Mr. Michael Tegeder
as Chief Financial Officer. He has excellent capital market expertise and
will be able to put his knowledge to excellent use. Furthermore, Mr Tegeder
brings a lot of experience in the field of finance and investor relations.
GBC AG: Coreo AG's strategy has so far been summarised under the catchword
value-creating growth strategy. This meant in particular the growth
strategy geared towards the acquisition of developable properties. Will you
stick to this strategy?
Dennis Gothan: My goal is 'growth' and I want to give Coreo AG a clear
direction and expand the company in the residential real estate sector. Our
focus is on the value-add segment. With our own and very experienced asset
management, I see great opportunities to be able to successfully implement
the potential and the strategies.
GBC AG: Are you sticking to the medium-term plan, according to which the
portfolio is to be expanded to EUR 400 - 500 million in the next four to
five years?
Dennis Gothan: Absolutely: we will continue to pursue the goal and are
clearly sticking to it. That was also the great attraction here - to build
up new substantial portfolios. I am looking forward to implementing this
together with our team.
GBC AG: You are currently planning to carry out a capital increase with a
gross volume of approximately EUR 5.5 million and use the money for further
growth. Are there any concrete investment opportunities?
Dennis Gothan: Yes, there are: For example, we have a well-filled pipeline
with attractive purchase opportunities. Furthermore, the inflowing funds
will be used to prepare the further growth of Coreo.
GBC AG: What relevant developments have taken place in the Coreo portfolio
in recent months?
Dennis Gothan: The most important thing is that we have compiled a full
inventory and identified the opportunities in the portfolio. In this
regard, a comprehensive catalogue of measures was developed in order to be
able to implement the ambitious growth steps. Ultimately, the appointment
of Mr Tegeder and the aforementioned capital increase are the first steps
in this direction.
GBC AG: How do you assess the impact of the corona pandemic or the
Ukrainian war on the business development of Coreo AG?
Dennis Gothan: Such severe crises naturally have their effects. As part of
our risk management, we monitor the market environment and interest rate
developments very closely. With regard to our portfolio and the real estate
sector, I do not expect any major losses in value in the long term. Our
financing is stable and sustainable. Real estate is still one of the safest
investment opportunities.
GBC AG: Mr Gothan, finally a question for investors with a long-term
investment horizon. Where will Coreo AG be in the next three to five years?
Dennis Gothan: With Coreo we currently have a company that has great
potential. The goal of building up a substantial portfolio is clear. We
have already set the first course to make this growth possible. I am
extremely pleased to be able to contribute all my experience and energy to
Coreo and to implement the growth strategy together with the excellent
Coreo team.
GBC AG: Mr Gothan, thank you very much for the interview.
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/23951.pdf
Kontakt für Rückfragen
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,5b,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung.htm
+++++++++++++++
Date (time) completion: 28.04.2022 (3:55 pm)
Date (time) first distribution: 29.04.2022 (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.