4Q16 – growth in recurring earnings underscored by increased DPS (+30% yoy, 3.4% yield)
CA Immo (CAI) reached FFO I of EUR 21.8m in 4Q16, nearly spot on with our estimate of EUR 21.7m. For the full year, CA Immo thus achieved FFO I of EUR 0.97/share, comfortably exceeding its FY16 target of EUR 0.90/share, while generating 4.2% FFO ROE. Following the strong FFO generation, management decided to increase its dividend guidance to 70% of FFO I (from 60% previously), proposing a DPS of EUR 0.65 from the 2016 profit. This represents a 30% annual increase and translates into a 3.4% dividend yield, while the dividend is covered comfortably, with FFO II at EUR 1.20/share for the year. Overall, the results were good, although we believe the market has come to expect a solid delivery from CA Immo. As such, we believe the hike in the dividend will be the main driver of the share price performance today, as most of the analysts covering CAI have been expecting a DPS in the range of EUR 0.55-0.60/share (our estimate stood at EUR 0.55/share).CA Immobilien Anlagenis a real estate investment company. Co. invests in commercial real estate, comprising hotel, residential, office, industrial, storage space, and logistics. Co. is also active in project development business. Co.'s activities are focused in Austria, Germany and Eastern Europe. Co. has 263 subsidiaries (including 24 joint ventures) in the following countries: Germany, Austria, Hungary, Luxembourg, Bulgaria, Netherlands, Slovakia, Cyprus, Russia, Czech Republic, Poland, Croatia, Ukraine, Romania and Serbia. Co., through its subsidiaries, is engaged in creation of entire urban districts, acquisition of real estate, project development, as well as property renovation.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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.