Await FFO inflection point; initiate with Neutral
17e P/FFO at 21.2x at 14% premium to global peers, justifying a steeper discount to NAV. We initiate coverage on Emirates REIT, the first Shariacompliant, diversified and externally managed UAE-based REIT, with a DDMderived TP of USD1.14/share, warranting a Neutral rating and implying a c33% discount to its 17e NAV estimate. While the stock offers a superior 17e div. yield of 7.4% (c2pp premium to peers and market), its 16a FFO covers only 47% of the 16e payout. The yield would be fully sustainable by 2019e, on our numbers, conditional on lease-out of the vacant space in
Index Tower (c80% vacant as at end-2016).
CI Capital is a diversified financial services group and Egypt’s leading provider of leasing, microfinance, and investment banking products and services.
Through its headquarters in Cairo and presence in New York and Dubai, CI Capital offers a wide range of financial solutions to a diversified client base that include global and regional institutions and family offices, large corporates, SMEs, and high net worth and individual investors.
CI Capital leverages its full-fledged investment banking platform to provide market leading capital raising and M&A advisory, asset management, securities brokerage, custody and research. Through its subsidiary Corplease, CI Capital offers comprehensive leasing solutions, including finance and operating leases, and sale and leaseback, serving a wide range of corporate clients and SMEs. In addition, CI Capital offers microfinance lending through Egypt’s first licensed MFI, Reefy.
The Group has over 1,700 employees, led by a team of professionals who are among the most experienced in the industry, with complementary backgrounds and skill sets and a deep understanding of local market dynamics.
CI Capital has been recognized as the “Best Investment Bank in Egypt” by EMEA Finance for four years running from 2013-2016, and by Global Finance in 2014 and 2015.
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