SRH AlsterResearch AG Update: FCR Immobilien - Portfolio expansion and final ‘20 results support BUY case

FCR Immobilien AG (update)

Real Estate
MCap EUR 117m

BUY, PT EUR 14.80 (+23% potential)
Research_update

FCR Immobilien (“FCR”) published its FY 2020 results and announced a major transaction in Eastern Germany. All in all, the publication of its FY report did not reveal any major surprise in comparison to its prelim results of mid-March. The company’s cash generation seem to be on track with a major swing in its FFO by a strong EUR 8m in 2020. The latest announcement of acquiring a retail park at a lucrative price (eAR), further increases confidence that FCR will be able to increase its portfolio by the envisaged EUR 160m in value this year. We therefore reiterate our BUY recommendation as the stock is trading merely on its NAV level of EUR 107m, which looks unjustified in our view, especially as other peers are trading with premiums between 15-25%. PT remains unchanged at EUR 14.80 offering an upside of 23%.

 

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