IBERIAN DAILY 17 MAY (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: BANKING SECTOR, CELLNEX, COLONIAL, FCC, GRIFOLS, MERLIN PROPERTIES, OHLA.European stock markets pause for a break
European stock markets saw moderate corrections after several sessions of gains that led the Stoxx 600 to record highs and the Ibex to 2015 highs above 11,300 pints. In the STOXX 600, Insurance and Basic Resources were the best performers vs. the losses of Autos and industrials. On the macro side, in the US, April’s industrial output stagnated, contrary to expectations, May’s Philadelphia Fed index dropped more than expected and April’s housing starts climbed less than expected. From the Fed, L. Mester, J. Williams, T. Barkin and W. Bostic urged to wait until the end of the year to begin cutting rates. In China, April’s retail sales grew less than expected, while housing prices fell steeper YoY and industrial output rose more than expected. Separately, the Govt. announced that it will allow local governments and state-run companies to buy homes in order to sell them as affordable housing. In US Results Walmart, Applied Materials and Deere came in better than expected.
What we expect for today
Stock markets would open with slight losses of around -0.3%. Currently, S&P futures are flat (the S&P 500 ended -0.41% lower vs. the European closing bell). Asian stock markets are sliding (China’s CSI 300 -0.15%, Japan’s Nikkei -0.45%).
Today in the euro zone we will only learn the final inflation data.
COMPANY NEWS
COLONIAL. Criteria subscribes new equity for 16.8% of capital. BUY.
The company has reached an agreement, whereby Criteria subscribes new shares in COL worth € 622 M (~16.78% capital) at € 7.10/sh. ex DPS (+15% vs. previous close, at a -29% discount to NTA’23 and at a -2% discount to our T.P.). The payment includes cash (56%) and real estate assets to be developed (44%, including 40/60 offices and residential). On the positive side the deal lowers the company’s leverage (LTV ratio is down -450 bps, according to COL) although, on the negative side, the inclusion of assets to be refurbished at NTA parity vs COL’s super-primer assets lowers the deal’s attractiveness. Yesterday the share price climbed +4% (vs. the theoretical impact from the capital increase of +3% vs. previous close and -4% NTA dilution). BUY.
MERLIN PROPERTIES: Good 1Q’24 Results. BUY
Rents and occupancy grew although the cash generated fell (as expected). Rental revenues: € 124 M (+4% vs. +1% BS(e)); EBITDA: € 91 M (+1% vs. -1% BS(e)). Total rents grow +4.2% and LfL rents +3.8% thanks to indexation (CPI) and the higher occupancy (+37bps vs. 4Q’23). By segments: offices grew +3% in LfL rents, retail +5% and logistic +5%. FFO fell -4% due to costs linked to the ramp-up of data centres and the increase in financial results. Even though the share price has seen a positive performance in the past year (+50%, +25% vs. EPRA and +28% vs. IBEX), we believe it still has upside, and thus we reiterate our BUY recommendation.
Fomento de Construcciones y Contratas is the parent company of a group engaged in sanitation services, cleaning, maintaining, purification and distribution of water, construction of highways, hydraulic works, marine works, air and rail transport infrastructure, urban developments, housing, non-residential buildings, office buildings, toll highways, parking garages, marinas and water treatment plants. Co. is also engaged in the manufacture and sale of cement and cement infrastructures, such as precast concrete elements; and in the financial markets, and real estate development, leasing and tourism.
Merlin Properties SOCIMI SA is a Spain-based company engaged in the operation of a real estate investment trust (REIT). The Company focuses on the acquisition, management and rental of commercial properties located in the Iberian Peninsula, primarily in Spain. The Company's activities are divided into the following segments: Office buildings, operating a portfolio of office space; High-street retail, engaged in leasing retail stores; Shopping centers, engaged in managing department stores; Logistics, operating logistics warehouses and distribution centers, and Others. The Company's other activities include property management services rendered to third parties.
Obrascon Huarte Lain is an international concession and construction groups based in Spain. Co. maintains significant operations in 30 countries across all five continents. Co. is engaged in hospital and railway construction, transport infrastructure concessions, oil and gas, energy, solids handling and fire protection systems and international contracts. Co.'s operations are organized along four divisions: OHL Concesiones, OHL Construccion, OHL Industrial y OHL Desarrollos. Co. is also engaged in real state project developments of mixed use managed by the international hotel chains.
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.