SRH AlsterResearch AG Update: FCR Immobilien AG - Good prelim 2020 results; EUR 8m jump in FFO

FCR Immobilien AG Real Estate Market Cap EUR 103m BUY, PT EUR 14.80 (upside 31%) FCR Immo_update FCR Immobilien (“FCR”) posted prelim. 2020 results which were in-line with consensus and our expectations. In our view, the highlight of last week’s announcement was the swing in FFO from the negative EUR 3m in 2019 to a positive EUR 5m in 2020 amid pandemic related headwinds, reflecting the company’s continued process to transform its business model to a pure play portfolio management and development company. The legacy trading activities are expected to slowly fade out. As such, we see FCR on track to yet again double its FFO in 2021E (eAR) not least because of ongoing portfolio transformation but also additional value accretive acquisitions in its lucrative niche market. We therefore reiterate our BUY recommendation as a discount of c. 4% to YE 2020 NAV of EUR 107m looks unjustified in our view, especially as other peers are trading with premiums between 15-25% . PT remains unchanged at EUR 14.80. For 5 current investment ideas, check our Weekly Screener Please note that AlsterResearch publishes MiFID II compliant research only. For a detailed discussion on MiFID II, please visit https://www.research-hub.de