S IMMO AG
Original-Research: S Immo AG (von NuWays AG): BUY

Original-Research: S Immo AG – von NuWays AG

Einstufung von NuWays AG zu S Immo AG

Unternehmen: S Immo AG
ISIN: AT0000652250

Anlass der Studie: Q3 Review
Empfehlung: BUY
seit: 30.11.2023
Kursziel: € 17,00
Kursziel auf Sicht von: 12 Monaten
Letzte Ratingänderung:
Analyst: Philipp Sennewald

Strong Q3 and another acquisition; chg.

Yesterday, S IMMO released a strong set of Q3 results, showing continued
top-line growth as well as significantly improved operating profitability.
Moreover, the company announced the acquisition of another portfolio in the
CEE region.

Q3 total revenues increased 24% yoy to € 81.1m (eNuW: € 79.8m) which was
mainly driven by last year’s acquisitions in the CEE region, resulting in a
rental income increase of 24% yoy to € 49.0m (eNuW: € 47.5m). Notably, Q3
revenues from hotel operations continued to recover post Covid, as segment
sales increased 26% yoy to € 18.5m (eNuW: € 19.0m) while the segment’s
operating margin significantly improved by 8.9pp yoy to 29.9%.

Against this backdrop, FFO was up 34% yoy to € 25.1m, which was however
below our estimate of € 28.3m. The gap is mainly explained by negative FX
effects to the tune of € 2.9m. The still overproportionate FFO increase is
based on reduced property operating as well as SG&A expenses.

While the operating business remains on a strong level, the company
provided further positive newsflow with another major CEE acquisition. As
flagged in our recent preview note, the company signed an LOI for a Czech
portfolio. Meanwhile, the deal for the 11 properties, which comprise a
lettable area of 138k sqm, has been signed. The portfolio is currently
valued at € 481m an generated rental income of c. € 29m. With this, S IMMO
acquired properties with a total annual rental income of c. € 50m YTD.

The new acquisitions are seen to be mainly financed with the proceeds from
the current disposal program in Germany. While properties worth € 621m have
already been sold, € 400m are still in the disposal pipeline (eNuW: € 250m
of which in Germany). As a quick reminder, yields in CEE are on average
3-4pp higher compared to German residential. Hence, the rebalancing of the
portfolio (e.g. selling German properties & buying CEE properties) should
substantially increase annual rental income, thus creating significant
shareholder value.

We confirm our BUY recommendation with an unchanged PT of € 17.00 based on
NTA and DDM.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/28431.pdf
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden
www.nuways-ag.com/research.

Kontakt für Rückfragen
NuWays AG – Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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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.