BEFIMMO - Accept The Brookfield Offer at 47.50 BEFB BB

On 1/6, the prospectus on the public bid for Befimmo was published and an analyst meeting was set up by the management to explain their position. We change our recommendation from “Under review” to “Accept the offer” as the bid takes away a lot of the uncertainties that held the stock back over the last couple of years. The results were improving under the new management as Like-for-like FY21 growth recovered to +3.6% (indexation), but the road to full transition is still long and the current economic uncertainty leaves little room for error. The stock price has been trading around the EUR 47.5 bid as a higher bid looks unlikely. The discount to NTA amounts to 21.3%. At the 1Q22 results, the company repeated its FY22 EPRA EPS guidance range of 2.40 to 2.45. Based on a number of valuation metrics, we believe that investors should accept the offer as the bid is conditional upon reaching 50% + 1 share. The Initial acceptance period starts on 7/6 and runs to 5/7, but more re-openings of the bid process are possible and likely until a final result is obtained before year-end.