Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Equity Bottom-Up

S Immo’s FY21 results saw a gross profit recovery very close to 2019 and EPS setting an all-time record of €3.24 per share. This was accompanied by a positive outlook statement. The shares closed at €22.75 on 29 April, representing a c 22% discount to its FY21 EPRA NAV of €29.29. On 2 May, it was announced that CPI had raised its bid for S Immo to €23.50 (cum dividend), which the management board has accepted.

S Immo’s FY21 results saw a gross profit recovery very close to 2019 and EPS setting an all-time record of €3.24 per share. This was accompanied by a positive outlook statement. The shares closed at €22.75 on 29 April, representing a c 22% discount to its FY21 EPRA NAV of €29.29. On 2 May, it was announced that CPI had raised its bid for S Immo to €23.50 (cum dividend), which the management board has accepted.

S Immo - FY21 results show continued solid recovery

European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>CPI has revealed a 55.07% stake in Immofinanz. The additional acceptance period will end on 28 May. CPI will likely continue purchasing shares in the market.</li>
<li>CPI now also controls 42.55% of S Immo. A combined CPI/Immofinanz/S Immo would have €24bn assets. Scale and sound capital management may bring handsome profits in the longer term.</li>
<li>Immofinanz's shares offer 5.1% 23e FFO yield. Gross spread to offer price is 0.6%. The convertible spread is c.2%. My TP is €25.86/share, 12.2% discount to EPRA NTA. Long IIA VA. </li>
</ul>


CPI has revealed a 55.07% stake in Immofinanz. The additional acceptance period will end on 28 May. CPI will likely continue purchasing shares in the market.
CPI now also controls 42.55% of S Immo. A combined CPI/Immofinanz/S Immo would have €24bn assets. Scale and sound capital management may bring handsome profits in the longer term.
Immofinanz's shares offer 5.1% 23e FFO yield. Gross spread to offer price is 0.6%. The convertible spread is c.2%. My TP is €25.86/share, 12.2% discount to EPRA NTA. Long IIA VA. 


CPI/Immofinanz: Additional Acceptance Period, S Immo

<ul>
<li>Immofinanz recommends shareholders neither accept S Immo's €23/share partial offer, nor CPI's €22.7/share for the whole share capital (both cum dividend). CPI controls (pending approvals) 35.5% of Immofinanz.</li>
<li>Crossed shareholdings and poor use of capital among Austrian real estate players put a lid on their stock market performance, nevertheless Immofinanz's discount to NAV is steadily approaching pre-Covid levels.</li>
<li>The shares of Immofinanz look good value in my view, at 4.3% 22e FFO yield, 21% discount to EPRA NTA, with the potential upside from an improved CPI's offer.</li>
</ul>


Immofinanz recommends shareholders neither accept S Immo's €23/share partial offer, nor CPI's €22.7/share for the whole share capital (both cum dividend). CPI controls (pending approvals) 35.5% of Immofinanz.
Crossed shareholdings and poor use of capital among Austrian real estate players put a lid on their stock market performance, nevertheless Immofinanz's discount to NAV is steadily approaching pre-Covid levels.
The shares of Immofinanz look good value in my view, at 4.3% 22e FFO yield, 21% discount to EPRA NTA, with the potential upside from an improved CPI's offer.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/s-immo-ag" target="_blank" data-smartkarma-citation="entities:22559:1" rel="noopener">S IMMO AG (SPI AV)</a> owns 14.2% of <a href="https://www.smartkarma.com/entities/immofinanz-ag" target="_blank" data-smartkarma-citation="entities:22547:1" rel="noopener">IMMOFINANZ AG (IIA AV)</a>, Immofinanz owns 26.5% of S Immo. <a href="https://www.smartkarma.com/entities/cpi-property-group-sa" target="_blank" data-smartkarma-citation="entities:21688:1" rel="noopener">CPI</a> is on a buying spree: 32% of Immofinanz, 11.6% of S Immo. </li>
<li>Merger discussions take another twist with two offers for Immofinanz: CPI launches an anticipated mandatory offer, which could later allow it to increase its stake; S Immo seeks to protect itself.</li>
<li>Immofinanz trades at 3.8% FFO yield. My TP, economic profit-based is €25.86/share, 15% discount to EPRA NAV, and 5% above the median TP of Capital IQ consensus. Long IIA AV.</li>
</ul>



S IMMO AG (SPI AV) owns 14.2% of IMMOFINANZ AG (IIA AV), Immofinanz owns 26.5% of S Immo. CPI is on a buying spree: 32% of Immofinanz, 11.6% of S Immo. 
Merger discussions take another twist with two offers for Immofinanz: CPI launches an anticipated mandatory offer, which could later allow it to increase its stake; S Immo seeks to protect itself.
Immofinanz trades at 3.8% FFO yield. My TP, economic profit-based is €25.86/share, 15% discount to EPRA NAV, and 5% above the median TP of Capital IQ consensus. Long IIA AV.


S Immo reported a 10% increase in EPRA net tangible assets (NTA) per share in Q221 to €27.21 (and 13% in H121), supported by c €129m of property revaluation gains, primarily in its German portfolio (72% of H121 gains), including the positive impact from the Berlin rental cap repeal on its residential portfolio. One of its top priorities will be the redeployment of proceeds from the sale of its CA Immo stake and the potential disposal of its IMMOFINANZ stake into new properties. It is also launching a new share buyback programme in September for c 1.36% of its share capital.

S Immo reported a 10% increase in EPRA net tangible assets (NTA) per share in Q221 to €27.21 (and 13% in H121), supported by c €129m of property revaluation gains, primarily in its German portfolio (72% of H121 gains), including the positive impact from the Berlin rental cap repeal on its residential portfolio. One of its top priorities will be the redeployment of proceeds from the sale of its CA Immo stake and the potential disposal of its IMMOFINANZ stake into new properties. It is also launching a new share buyback programme in September for c 1.36% of its share capital.


S Immo - Embarking on an extensive investment plan

Austria

S IMMO AG is a property investment company that invests in diversified real estate in Eastern Europe. The Company invests in prime real estate in Austria, Germany and countries in Central and Southeastern Europe. S IMMO's portfolio includes residential, office, retail space and hotels.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

S IMMO AG (SPI AV)

S Immo - FY21 results show continued solid recovery

S Immo’s FY21 results saw a gross profit recovery very close to 2019 and EPS setting an all-time record of €3.24 per share. This was accompanied by...

Edison Investment Research

CPI/Immofinanz: Additional Acceptance Period, S Immo

CPI now holds 55.1% of Immofinanz. The three month additional acceptance period runs until 28 May and will provide support for the shares. Gross...

Jesus Rodriguez Aguilar

CPI/Immofinanz: Raised Offer

The saga continues. Immofinanz recommends shareholders neither accept S Immo's partial €23 offer, nor CPI's €22.7 for the whole share capital (both...

Jesus Rodriguez Aguilar

S Immo and CPI Wrestle for Immofinanz

Interesting developments for Immofinanz, with two competing bids and a possible three-way merger. If CPI increases its bid above S Immo's, it will...

Jesus Rodriguez Aguilar

S Immo - Embarking on an extensive investment plan

S Immo reported a 10% increase in EPRA net tangible assets (NTA) per share in Q221 to €27.21 (and 13% in H121), supported by c €129m of property...

Edison Investment Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)