Original-Research: S Immo AG (von NuWays AG): Hold

Classification of NuWays AG to S Immo AG

Company Name:	S Immo AG
ISIN:	AT0000652250
Reason for the research:	Update
Recommendation:	Hold
from:	30.08.2024
Target price:	EUR 24.00
Target price on sight of:	12 months
Last rating change:
Analyst:	Philipp Sennewald

Q2 in the books – SO & delisting expected for H2; chg.

Topic: S IMMO released its H1 results on Wednesday evening, showing strong top line growth as well as improved operating profitability.

Q2 sales increased by 15% yoy to € 186m (eNuW: € 181m), which was mainly driven by increased rental income of € 112m (+19.2% yoy) following several major acquisitions in Austria and the Czech Republic. Moreover, the hotel segment grew revenues by 7.7% yoy to € 33.8m.

Against this backdrop, FFO I increased by 47% yoy to € 1.04 per share, also implying an FFO margin improvement of 9pp driven by operating leverage on the G&A level. The EPRA NTA remained stable at € 24.86 per share.

Disposal program on track. In H1, S IMMO continued the disposal of its properties in Germany. The company aims to leave the German market entirely in order to invest the freed funds into higher yielding properties in the CEE region. As of H1, the company reduced its portfolio in Germany to € 300m, which compares to € 1.25bn 18 months ago. During this time, the average gross initial yield of the total portfolio increased by 1.1pp to 6.9%, which should serve as a proof of concept for the shift in strategy. Management aims for a disposal of the remaining properties in due course (eNuW: until H1 ‘25e).

Squeeze-out and delisting looming. S IMMO announced that the Extraordinary General Meeting to resolve the squeeze-out is expected to take place in autumn, likely in October/November. Before this, The cash settlement will be determined on the basis of an external expert opinion. Afterward, the resolution must be entered into the commercial register, whereupon a two-months period for the cash settlement begins. At the same time, the Vienna Stock Exchange is seen to initiate the delisting of the shares, which we expect to happen already in the course of Q4.

Hence, the stock remains a HOLD. Yet, we increase our PT to € 24 (old: € 19) in light of the looming squeeze-out. The new PT is orientated to the current BV/ps of € 23.63 and the NTA/ps of € 24.86.

You can download the research here: http://www.more-ir.de/d/30673.pdf
For additional information visit our website: www.nuways-ag.com/research

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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