Montea FIRST LOOK 1H23 Results : Old fashioned Beat and Raise (excl.DBI!)
Net Rental Income grew faster than our expectation on new developments and 6.0% lfl growth. The 1H23 EPRA EPS of 2.34 came above our 2.25 expectation (incl. DBI effect). Yield expansion over 2Q23 also moderated as NIY rose only 4bps to 5.03% (4.99% at 1Q23). LTV stays in the safe zone at 40.5%. Montea raised its FY23 EPRA EPS guidance to 4.60 from 4.40 (incl. DBI) and its FY24 EPRA EPS to 4.50 vs. 4.30 previously (organic Track24). The increase in EPRA EPS23 is impressive as the average share count increased by 10.4% into FY23. The rental income increases as the company invests EUR 160m over FY23 at higher than estimated yields above 6%. Montea shifts investments more to own developments. We believe that a mild recession is still the most likely outcome for Western-Europe over FY23-24. However, near-shoring of production and supply chain optimisation keeps demand for logistics space buoyant and occupancy rates high. The price/NTA premium now amounts to -0.5%. We maintain our Accumulate rating and TP of 90 EUR. We will adjust our EPRA EPS expectations to the new guidance. Analyst call at 11h00 CET.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
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.