Ascencio 3Q24 results slightly above estimates, Intermarché at 18%

Ascencio reports 3Q24 results slightly above our estimates. The uptick is mainly driven by a higher than expected like-for-like growth. The occupancy rate remained stable at 97.7% vs 98.6 % at 1H24. The like-for-like growth is strong and above inflation at 4.5% (+4.9% BE, 4.1% FR, -5.1% SP). At 1H24 results we increased our TP from EUR 51.0 to EUR 52.0 on the back of a 3% EPRA EPS increase and lower than expected financial costs. Ascencio is an interesting dividend stock which offers a good risk adjusted return. It is making big efforts to get its premises more energy efficient but there is still a long way to go. Its largest tenant Casino, has been recently taken over by intermarché. Operations have now been transferred and Intermarché represents 18% of rental income. There is no visible impact on rental income in the 3Q24 results. We would like to have a better visibility on this before upgrading Ascencio but admit that the valuation is attractive on an NTA and P/E basis.