^ Original-Research: S Immo AG - from NuWays AG

30.08.2024 / 09:02 CET/CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.

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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 EUR 186m (eNuW: EUR 181m), which was mainly driven by increased rental income of EUR 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 EUR 33.8m.

Against this backdrop, FFO I increased by 47% yoy to EUR 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 EUR 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 EUR 300m, which compares to EUR 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 EUR 24 (old: EUR 19) in light of the looming squeeze-out. The new PT is orientated to the current BV/ps of EUR 23.63 and the NTA/ps of EUR 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 ++++++++++ Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse. ++++++++++

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1978159 30.08.2024 CET/CEST

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Quelle: dpa-Afx