WOOD Flash – Echo Investment: 3Q18 – a decent quarter; Brewery J pre-sold at 5.0% yield (double the cost)
Echo has reported a set of decent 3Q18 figures. However, we do not expect the results to drive the share price. We expect the market to continue to scrutinise cost control closely, on both the project (capex) and group (overheads) levels. Even more importantly, we expect the market to be fixated on refinancing. Several weeks ago, Echo placed 5Y bonds to individual investors at PLN 50m, with a 340bps margin over 6M WIBOR. Whether or not management succeeds in issuing new debt (to finance land acquisitions) is among the key future considerations for the special dividend. If the company does manage to raise additional (c.PLN 200m, on our estimates) debt capital within the next 3-6M, and does not identify any larger takeover target (e.g., buying a developer to access its land bank), the regular AGM may decide to redistribute the proceeds from the EPP shares as a special dividend.Echo Investment is a real estate investment and development company based in Poland. Co.'s is engaged in operations in the real estate market, the design, construction and development of shopping and entertainment centers, hotels, office buildings, houses, blocks of flats and apartments. Co.'s operations are organized along three operating segments: Shopping and Entertaining Centers, Offices and Hotels and Residential. Co. also offers general contracting services for third party investors. Co. owns properties throughout Poland, including Szczecin, Poznan, Warsaw, Krakow and Kielce, among others, and abroad, including Ukraine, Romania and Hungary.
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.