Original-Research: Coreo AG - von GBC AG
Einstufung von GBC AG zu Coreo AG
Unternehmen: Coreo AG
ISIN: DE000A0B9VV6
Anlass der Studie: Research Note
Empfehlung: BUY
Kursziel: 2.60 Euro
Kursziel auf Sicht von: 31.12.2021
Letzte Ratingänderung:
Analyst: Cosmin Filker; Marcel Goldmann
Issue of a 6.75% bond with a volume of up to EUR 30 million for the expansion of the real estate portfolio and for the premature repayment of the bond with warrants attached 2018/2022
On August 13, 2020, Coreo AG announced the issue of a 6.75% corporate bond with a volume of up to EUR 30 million and a term of 5 years. The public offering is scheduled to take place in the period 24.08.2020 to 08.09.2020. The security has a coupon of 6.75 % p.a. payable semi-annually. The listing is to take place on the Freiverkehr of the Frankfurt Stock Exchange.
The Company plans to use the bond funds primarily to finance the further growth of its residential and commercial real estate portfolio. The focus here is on the Value Add segment in mid-centre locations in Germany. According to the latest available figures as of December 31, 2019, Coreo AG has a property portfolio (IFRS) of EUR 44.38 million. For further properties acquired in 2019 with a volume of just under EUR20 million, the transfer of benefits and burdens did not take place until the first half of 2020. The long-term investment plan foresees a significant expansion to over EUR400 million over the next 4 - 5 years. If a loan-to-value of 75% is assumed for property financing, Coreo AG would have to raise new capital of around EUR85 million for the outstanding investments in the coming fiscal years. In addition to the access to liquidity from the planned valueenhancing sales, part of this is to be provided by the current bond issue.
However, the company also intends to use the proceeds of the issue to redeem the option bond, which runs until 2022 and has a current outstanding volume of EUR15 million, ahead of schedule. In this case, the company would achieve an immediate improvement in earnings, as the warrant bond has a coupon of 10%, which no longer corresponds to the company's development since the issue. If it were to be repaid in full, annual interest savings of EUR 0.49 million p.a. would be achieved.
In our last research study (see study dated 17 June 2020), we assumed a significant expansion of the property portfolio and real estate projects in the coming financial years. For the current financial year, we expect investments totaling EUR 40 million. To this extent, the funds from the bond issue would increase the financial basis for the corporate growth we have assumed. The key creditworthiness figures derived from our unchanged forecasts are comparatively sound. The expected EBIT interest coverage ratio for the current fiscal year is 2.4 and is expected to increase significantly to 3.6 as early as 2021.
In the course of the current bond issue, we conducted an interview with Coreo board member Marin Marinov. This is available at http://www.moreir. de/d/21403.pdf.
Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/21459.pdf
Kontakt für Rückfragen
Jörg Grunwald
Vorstand
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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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:
http://www.gbc-ag.de/de/Offenlegung.htm
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Date (time) completion german version: 20.08.20 (14:05)
Date (time) first distribution german version: 20.08.20 (15:00)
Date (time) completion english version: 26.08.20 (09:55 am)
Date (time) first distribution english version: 26.08.20 (11:00 am)
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