Original-Research: Coreo AG - von GBC AG

Einstufung von GBC AG zu Coreo AG

Unternehmen: Coreo AG

Anlass der Studie: Research Report (Anno)
Empfehlung: BUY
Kursziel: 2.60 EUR
Kursziel auf Sicht von: 31.12.2021
Letzte Ratingänderung:
Analyst: Cosmin Filker, Marcel Goldmann

- Higher investment volume expected in 2020
- Significant revenue and earnings growth forecasted

Since Coreo AG began to focus on building up a residential and commercial
portfolio, several properties and real estate portfolios have been acquired
in recent fiscal years. As of December 31, 2019, the company had on-balance
sheet properties in the amount of EUR 44.38 million (December 31, 18: EUR
40.02 million), which has been expanded compared to the previous year, in
particular due to valuation effects. The goal of doubling the property
portfolio through new investments in the 2019 financial year was therefore
not achieved. However, Coreo AG acquired 10.1 % of the Frankfurt St Martin
Tower property as part of a joint venture and, in November 2019, a
portfolio comprising 272 apartments and a commercial unit in North Rhine-
Westphalia. However, the transfer of the NRW portfolio did not take place
until 2020, which is why this new investment is not yet included in the
2019 figures.

As a result of the expansion of the portfolio in recent years, rental
income improved to EUR 2.92 million in 2019 (previous year: EUR 2.16
million). At the same time, sales proceeds of EUR 2.98 million (previous
year: EUR 6.73 million) were below the previous year's figure, as planned.
In 2019, partial sales were made in Mannheim, sales of properties in the
Hydra portfolio and the sale of individual properties in Göttingen. The
sale of properties in the Goettingen portfolio (EUR 5.88 million), among
others, was only recognized in revenues and earnings after the balance
sheet date. Finally, Coreo AG reports valuation income of EUR 3.06 million
(previous year: EUR 2.64 million) as the third revenue component.

As a result of the lower proceeds from disposals and the resulting decline
in sales income, as well as increased modernization and conversion work,
Coreo AG posted a lower EBIT of EUR 2.50 million (previous year: EUR 4.89
million). Although financial expenses decreased, the after-tax result was
negative at EUR -0.86 million (previous year: EUR 1.66 million).

The break-even point should be clearly exceeded again in the current and
coming financial years. On the one hand, the company should achieve further
rent increases on the basis of the current property portfolio. In
particular, the letting of existing vacancies in the Hydra portfolio should
lead to an increase in rental income. At the same time, the company should
record a strong increase in proceeds from the sale of the Göttingen
properties alone. The valuation result should be higher than in the
previous year due to investments in the existing portfolio, in particular
in the Hydra portfolio.

Another aspect of our forecasts is planned property acquisitions. Although
Coreo AG expects to increase its real estate portfolio to over EUR400
million within 4-5 years, we are taking a more conservative approach to our
planning. For the next three financial years, we expect investments of EUR
40 million each, with a large part of the investments already made in 2020
with the acquisition of the NRW portfolio. Liquid funds of EUR 5.20 million
plus the addition of liquidity from the sale of, among other things,
properties in Göttingen (EUR 5.88 million) and a recently implemented
capital increase (EUR 1.91 million) should provide sufficient financial
leeway. The portfolio of MagForce shares in the amount of EUR5.80 million
must be added to this figure.

As part of our DCF valuation model, we have determined a fair value per
share of EUR2.60. Based on the current share price of EUR 1.29, we thus
assign the BUY rating.

Die vollständige Analyse können Sie hier downloaden:

Kontakt für Rückfragen
Jörg Grunwald
Halderstraße 27
86150 Augsburg
0821 / 241133 0
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 mölicher Interessenkonflikte finden Sie unter:
Date and time of completion (german version): 17/06/2020 (8:45 am)
Date and time of first distribution (german version): 17/06/2020 (11:30 am)
Date and time of completion (english version): 22/06/2020 (10:20 am)
Date and time of first distribution (english version): 22/06/2020 (2:00 pm)

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