Graphisoft Park: industry-leading FFO ROE, despite low LTV (stays BUY)
Graphisoft Park SE (GSPARK) has generated a total return of more than 95% since we upgraded it to a BUY in September 2020. Over the same period, the total return of European real estate stocks has been flat, as the sector is yet to recover from the higher rate environment. We continue to see GSPARK as offering great value, with low leverage, a high ROE, conservative valuations, and a unique, campus-like portfolio. We forecast the FFO broadly flat yoy in 2026E and expect a moderate step-up in capex in 2026-27E, driven mainly by ESG investments. The Northern Area, which is still awaiting decontamination, offers meaningful upside optionality. With its 2025E LTV at 22%, GSPARK remains one of the least leveraged real estate names in Europe, providing a substantial margin of safety. Its 9% FFO ROE is notable, in this context, and would be materially higher under a more geared balance sheet. We maintain our BUY rating and adjust our 12M price target (PT) to EUR 15.0.Graphisoft Park SE Ingatlanfejleszto Europai Rt is a Hungary-based company engaged in the real estate operations. The Company operates as a holding and provides management, financial and administrative services to its subsidiaries. As of December 31, 2011, the Company operated two subsidiaries, Grpahisoft Park Kft, engaged in the real estate development; and Graphisoft Park Services Kft, responsible for property operation tasks. The total area of the Company's properties was nearly 18 hectares. As of December 31, 2011, the Company's two subsidiaries, Graphisoft Park Universitas Kft and GP3 Kft merged into Graphisoft Park Kft. As of December 31, 2011, the Company's parent entity was Graphisoft SE.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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