Trading update confirms portfolio strength
| Summit Germany owns a well-diversified portfolio of commercial property located in Germany's main commercial centres. The portfolio generates steady rental cashflow, with potential for material growth in both revenues and capital values through active asset management. The latest trading update confirmed robust portfolio performance this year and underpinned the outlook for FY16. The group's 103 assets, currently 87% occupied, generate €57m pa of net rent, with potentially another c €6m theoretically achievable if it were fully let. The aggregate portfolio at the half-year was valued at €582.4m (8% rental yield). That has since increased to €718m, post recent acquisitions and the revaluation of the portfolio acquired in July. This all provides strong support for our forecasts, and there remain plenty of opportunities within the portfolio for management to work assets to enhance rental income and capital values, via new lettings/reduced vacancies, conversion to residential use and development of surplus land. Acquisitions this year have enhanced cash earnings and NAV, and the update confirmed that pipeline acquisitions should be similarly accretive. This supports our forecast increase in distributions, boosting an already attractive yield on the shares. |
Summit Germany is a commercial real estate company, with a portfolio of properties mainly focused in Germany's main commercial centres. Co. owns, enhances and operates commercial real estate assets in Germany including office buildings, logistic centres and others, which are leased to commercial and industrial tenants. Co. invests primarily in such properties that provide substantial income flows and potential for value increase through asset management. As of Dec 31 2016, Co.'s aggregate portfolio comprised 100 assets, ca. 864,000 square meter (sq. m) of net lettable space, located on approximately 1,407,000 sq. m of land.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.