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Rating update regarding Vienna-based office real estate specialist CA Immo

(PresseBox) (Frankfurt, ) Today, SRC Research, the bank-independent analysts’ house for financial and real estate stocks, publishes a rating update regarding Vienna-based office real estate specialist CA Immo. The company has a current real estate portfolio of about Euro 3.6bn.

Today, CA Immo released its 1Q 2016 report and hosted a conference call in the afternoon to give more insights into strategy and numbers. The net rental income significantly increased by 13% from Euro 31m to more than Euro 35m. The EBIT also performed very well and almost doubled from Euro 25m in 1Q 2015 to now almost Euro 47m. The pre-tax profit would have almost doubled as well but there have been some negative but non-cash mark-to-market valuations of the Immofinanz shares in a magnitude of Euro 15m which impaired the EBT. However EBT still slightly rose from Euro 18.3m to Euro 19.1m. Keep in mind that the cash financing costs of the group significantly decreased from Euro 15m in 1Q 2015 to now only Euro 11m.

In contrast to rental income and EBIT, the FFO result was a little bit behind our expectations. FFO I came in at Euro 21m, after almost Euro 22m in the year before. There has been a row of smaller other revenues and expenses which ended up with a higher amount in the last year. All in all, the company confirmed its target to reach a 10% increase in company's full year FFO, after it was at Euro 81m in 2015. We still think that this is a realistic scenario.

In a nutshell, the 1Q numbers give us no reason to change our Buy recommendation or our Euro 21.00 target price. Our target price is supported by the EPRA NAV per share which slightly increased by 1.2% to Euro 24.61 in the first three months of the year. We have to wait how co-operation works out between the management and the supervisory board in the future, as this board now contains more people after the recent AGM on 3 May, after Immofinanz / O1 Group took the right from the registered shares to send three additional persons to the supervisory board. For any queries regarding our CA Immo update please do not hesitate to contact us.