Montea 1H22 Results on track, lower target, maintain Accumulate
Montea reported EPRA EPS of EUR 2.00 that included 0.03 of exceptional costs (1Q22) and came slightly short vs. our 2.05 EPRA EPS expectation. The difference can be explained mainly by higher financial costs and taxes. The rental income came in line with our exp. at EUR 42.7m vs. 42.6 exp. Montea repeated its guidance for FY22 EPRA EPS of EUR 4.00. We maintain our FY22 EPRA EPS at 4.20 and the FY23 at 4.40. The Track24 guidance calls for a FY24 EPRA EPS of EUR 4.30. We believe they can still reach that target a year early. The rental income is developing in line with our model and we expect the heavy investments from 1H22 and indexation to kick in over FY23-24. Over the longer term, we believe that a mild recession has become unavoidable in Western-Europe over FY23. However, near-shoring of production and supply chain optimisation will keep demand for logistics space buoyant and occupancy rates high. The NTA premium has declined to 39% from a peak of 110% in December. We maintain our Accumulate rating but lower our TP from EUR 130 to Euro 118 to reflect mainly higher interest rates and discount rate.Investment Case : Montea announced a EUR 800m investment plan (Track24) and is on track to average 200m annual investment. The key to a successful investment strategy is owning the right land bank. Montea claims a land bank of around 2.2m sqm. of which around 900k can be developed into usable area. Recent projects like the Canal in BXL and Blue gate in Antwerp show their ability to also answer to the current modern demands of Multimodal development close to a rail “track” and water ways. The main risk to our case is not finding the right customers at an interesting yield. Montea has been a cautious investor in the past and avoided speculative investments. We will follow-up on the progress of these investment plans and adjust our expectations.
Capex Model Track24 (Developments and Acquisitions of standing assets)
Montea Comm VA, formerly Montea CVA, is a Belgium-based real estate investment trust specialized in logistics and semi-industrial real estate in Belgium, the Netherlands and France. The Company's property portfolio represents approximately a surface of 584,694 Square meters (m2) across 37 sites. Its group companies include, among others, Montea Management NV, Montea Comm. VA, Acer Park NV, Montea Nederland NV, Montea Almere NV, Montea Rotterdam NV, SCI Actipole Cambrai, SCI Sagittaire, SCI Saxo, SCI Sevigne, SCI Socrate and SCI 3R. In addition, the Company also partners with Decathlon.
We are a financial services provider for several types of professional clients, each with distinct needs.
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.