CR Capital Real Estate AG

29.10.2009 - Equity Research Einzelstudie // kaufen

Researchstudie Anno - CR Capital Real Estate AG - Buy

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Unternehmen: CR Capital Real Estate AG
Branche: Immobilien
Rating: kaufen
Kurs bei Erstellung in €: 27.10.2009: 1,28
Kursziel in €: 2,09
Mögl. Interessenskonflikt gem. §34b Abs.1 WpHG und FinAnv: 5

Business activity of CR Capital Real Estate is the management of first-class residential and commercial properties at very good locations in the greater Berlin area. A important strategic focus are residential properties. Thus the company is to become the first „Wohn-REIT“ in Germany. Residential properties usually generate continuous cash flows and are less volatile which should be particularly interesting for investors, in our opinion.

All in all, due to demographically positive conditions the Berlin real estate market performs well in spite of the current economic situation. Higher purchasing power of the Berlin population as well as an unchanged high immigration rate is opposed to limited space of living. As a consequence the financial crisis had only little effect on the Berlin real estate market which was even characterized by a slight increase of rents.

CR Capital Real Estate is well positioned in the top regions of Berlin which represents a good basis for future success. Due to high demand three properties are to be sold, at the same time the total lettable space should be expanded to 6,800 sqm by the end of the year. Due to the strategic focus of the company which is planning to obtain the REITstatus, investment focus of CR Capital Real Estate AG will be in line with legal requirements. In this process the company intends to max out the allowed portion of residential area in order to expand a balanced commercial and residential portfolio. Rental income from residential properties is considered as relatively stable and offers additional security for investors.

Moreover, future investments are partly planned to be done with credit capital. Law requires a minimum equity rate of 45 % for REIT companies. Implying an equity rate of 45 % we expect a total portfolio of 6,800 sqm by the end of 2009 as well as 12,900 sqm (end of 2010). Based on that we forecast an increase of rental income of EUR 0.52 m (2009) and EUR 1.70 m (2010). Sales revenues of the three objects just mentioned are expected to have a positive effect on total income in the current financial year 2009 as well. Consequently, we expect total income amounting to EUR 2.32 m (2009), respectively EUR 4.38 m (2010). In addition we see in 2009 a net profit of EUR 1.50 m and in 2010 of EUR 2.06 m as realistic.

Based on our DCF model we have calculated a fair value per share of EUR 2.09. With a current price level of EUR 1.28 we see a strong undervaluation. Our Rating is „BUY“.


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