Dr. Roger Becker

Portfolio expansion is progressing - further bond tap planned

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Currently, Diok RealEstate AG (Diok) has further expanded its portfolio to 16 properties in German secondary locations. In fiscal year 2019, the company achieved a consolidated net income of almost €30 mln. Due to transaction costs related to the intense acquisition activity, operating cash flow amounted to €-3.8 mln. In FY 2019, the company invested €98 mln in properties, financed through the bond, bank loans and own funds.

Compared to the short FY 2018, in 2019 the GAV increased from €64.0 mln to €205.6 mln and the NAV more than quadrupled from €9.5 mln to €43.3 mln. At the end of the current FY 2020, we expect a gross portfolio value of around €390 mln and a close doubling of NAV to €82 mln.

The company continues to pursue its strategy of consistently expanding its portfolio of office properties in secondary locations for letting purposes and eventually sell them as a package at the end of the bond's term in 2023. The establishment of a critical mass increases the attractiveness and thus the visibility vis-à-vis large institutional, including international investors.

From today's perspective, we consider liquidity and thus the ability to service debt as robust. The B rating with "stable outlook" from S&P, which was awarded at the beginning of November 2019, confirms this view. Our model shows – assuming (gradual) full placement of the bond - that the portfolio can be expanded to about €1 bln by 2023.


BankM AG
BankM AG

Since 2007, BankM AG (Frankfurt am Main, Germany) is the partner of small and medium-sized enterprises and specializing in capital market financing with its experienced, interdisciplinary team. SME customers benefit from individual service and rapid access to selected investors that fit their needs. BankM's services include capital market advisory, arranging IPOs and capital increases for equity financing, debt advisory and debt capital mediation, designated sponsoring and research as well as M&A, hereby specializing in the identification of suitable strategic partners in China.

Dr. Roger Becker

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