Original Research: ACCENTRO Real Estate AG (from Montega AG): Buy

approx. 7 months remaining bond maturity 2020/2023 Original research: ACCENTRO Real Estate AG – by Montega AG

Classification of Montega AG to ACCENTRO Real Estate AG

Company: ACCENTRO Real Estate AG


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Test reason: Update

Recommendation: Buy

from: 07/06/2022

Target price: 9.00

Target price over the period: 12 months

Last Rating Change: –

Analyst: Patrick Speck

Rental portfolio greatly expanded, but refinancing unresolved

For now, Bond is serious about stock history

ACCENTRO announced a major real estate transaction on Monday


Acquisition in East Germany: ACCENTRO acquired von

a rental portfolio of 682 units between a private investor

Magdeburg and Halle. According to the company, the real estate is located in

economically developing region and attractive landscape

with a high recreational value and approximately 39,000 sq m of rentable space

square meters and a vacancy rate of around 27%. acquisitions z

correspond to increased vacancy rates and short-term value growth potential

the company’s acquisition strategy. At the same time, ACCENTRO

sold 28 units in Rostock to the same investor.

The rental portfolio has expanded significantly: The rental portfolio is increasing as a result of the acquisition

ACCENTRO by almost 20% to around 4,300 units. Transaction

follows the strategic goal of the company, in the medium term, which

relatively stable rental activity as another pillar alongside

more cyclical housing privatization and promising but still closed

set up a growing service business. The management aims to:

prospectively covering the OPEX group solely on the basis of rental income

can, for which in our opinion, the rental portfolio> 10,000 premises with low

a vacancy is necessary.

Bond refinancing is in the air: the background only

approx. 7 months remaining bond maturity 2020/2023 (volume: 250.0 million

Euro) and the resulting ACCENTRO capital requirements, we assume

relatively low purchase price of new eastern units (MONe:

<30 million euro). In total, we calculate taking into account the proceeds from sales in

Rostock even with a capital requirement of less than EUR 20 million

more than enough cash and cash equivalents (Q1: EUR 158.9 million).

Possibilities and options for servicing or refinancing

in our opinion, the transaction will not affect the short-term bond

has changed a lot. Instead, we are currently considering

Tender offer as the most likely option for a (partial) replacement

the bond is currently traded at just 43% of its face value.

Model updated: capabilities such as the recent acquisition in

We see East Germany as evidence of a good negotiating position

ACCENTRO, which on the one hand consist of a full sales funnel, like

“Negotiating ground”, and on the other hand, various options, like

Residential investor, developer and portfolio holder. From acquired

Hire portfolio, but only after the end of the benefit load shift

is economically transferred to ACCENTRO, we expect only this year

little impact on the profit and loss account. The transaction on an annual basis should work

Increase in rental income by almost EUR 2 million annually. this

The gross rental profitability of the new portfolio should therefore be around 6-7%


Conclusion: ACCENTRO continues the strategic direction that still is

In our opinion, unclear bond refinancing will weigh on for now

in the right direction. Nevertheless, we see stocks as fundamental

see and on the basis of NAV as too cheap and confirm our assessment

“Buy” and a target price of 9.00 euros.

+++ This message is not an investment advice or an invitation to conclude

some stock transactions. Please see our RISK NOTICE /

STATEMENT on http://www.montega.de +++

About Montega:

Montega AG is one of the world’s leading bank independent research houses

with a clear focus on German medium-sized companies. Range universe

contains titles from MDAX, TecDAX, SDAX and selected small caps and

is constantly expanded thanks to successful stockpicking. Montega understands

itself as an external research provider for institutional investors and

focuses on creating scientific publications and

Organization of roadshows, field trips and conferences. To customers

include long-term value investors, asset managers and

Family offices mainly in Germany, Switzerland and Luxembourg. this

Montega analysts have excellent connections with

Top management, deep market knowledge and many years of experience in

Analysis of German small and mid-cap companies.

You can download the full analysis here:


Contact for questions

Montega AG – Stock Research

Telephone: +49 (0) 40 41111 37-80

Website: www.montega.de

E-mail: [email protected]

LinkedIn: https://www.linkedin.com/company/montega-ag

——————- Sent by EQS Group AG .——————-

Publisher or

responsible for the author of the study. This announcement is not an investment advice

or inducing to enter into specific stock exchange transactions.


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