Montea FIRST LOOK: 1Q23 shows healthy market dynamic
Net Rental Income grew faster than our expectation on new developments and 6.1% lfl growth. The EPRA EPS came exactly in line with our 0.95 expectation as Montea increased hiring in new regions France and Germany. Yield expansion over 1Q23 moderated as NIY rose 14bps to 4.99%. LTV stays in the safe zone at 39.5%. The Dutch DBI status was confirmed between 2015-19 and will return EUR 8.1m. Montea confirmed FY23 EPRA EPS guidance of EUR 4.20 and reconfirmed its FY24 EPRA EPS of 4.30 (Track24). A 2.4% YoY increase in EPRA EPS23 is still 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 7%. We maintain our Accumulate rating and TP of 90 EUR. Analyst call at 11h00 (CET)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.
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