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Warimpex with rising 1Q revenues and an improving bottom line (Buy and Euro 1.40 target affirmed)

(PresseBox) (Frankfurt, ) SRC Research, the bank-independent analysts' house for Financials and Real Estate stocks today presents a rating update on listed property developer and hotel specialist Warimpex. The portfolio consists of Hotel-, Office buildings and development in different stages with a Gross Asset Value of about Euro 341m.

Yesterday, the company released its 1Q 2016 report and hosted a conference call to give more insights into numbers and strategy. The numbers were good and are a good basis to return in 2016 to the profit zone. After the number of rooms decreased after the 2015 sales of andel's Berlin and the two Russian Ekaterinburg hotels by 17%, the 1Q 2016 hotel revenues only slightly declined by 7%, from Euro 10.1m to Euro 9.4m. In contrast to that, the rental income from investment properties boosted after the completion of St. Petersburg Zeppelin tower and Budapest Erzsebet office which are both fully rented out. Rental income from investment properties quintupled from Euro 0.4m to Euro 1.9m. The overall group's revenues increased by 8% from Euro 11.0m in the previous year to Euro 11.9m in 1Q 2016.

The good top line picture was supported by an improved financial result with lower financing expenses and in addition to that some positive F/X effect from a slightly improving Russian Rouble. Keep in mind that the Russian Rouble was responsible for non cash F/X related expenses in the huge amount of almost Euro 20m in the Warimpex 2015 P & L. The net result after minorities in the first quarter - in general being not the strongest in the hotel business - improved from Euro -6.3m to only Euro -1.0m. With this bottom line result we feel optimistic for our 2016 full year forecast which we gave after the release of the 2015 numbers.

Besides the good picture for revenues, financial result and bottom line Warimpex delivered some good news regarding the development pipeline in Poland and Russia. For instance the firm received the building permit for a new office in the Polish city of Lodz (26k sqm) and signed a long-term pre-lease agreement for the parking garage at the St. Petersburg airport city. After the decent picture of 1Q we decided to maintain our Buy recommendation for the Warimpex share. We also stick to our Euro 1.40 target price which is below the Euro 1.80 Triple NAV per share. For any queries regarding our Warimpex update please do not hesitate to contact us.

Warimpex will join our 2016 investor event Forum Financials & Real Estate on 8 September at the Frankfurt Hilton. You will find more information and the opportunity for a cost-free registration on

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