WOOD Flash – Graphisoft Park: 3Q23 – steady as she goes
The occupancy of Graphisoft Park’s offices has remained stable, so far, at a very high level of 97% throughout 9M23. The portfolio seems to be en route to generate FFO of around EUR 14m both this and likely also next year (even when factoring in some deterioration in the occupancy, going forward). This translates into an FFO yield of around 16-17% on the current share price (0.5x P/NAV). While the yield adjustment across European real estate may continue into 2024E, we maintain our view that Graphisoft Park represents a very attractive risk-reward at the current levels, for those who can get involved, despite the low liquidity of the shares. The 8% yield at which the properties are booked does not strike us as stretched. In combination with the sound balance sheet (LTV of 35%, entire debt on a fixed or hedged rate) and good returns (FFO RONAV of c.9%), we see the fair value of the shares above the levels at which the stock is trading currently. We maintain our BUY rating.Graphisoft Park SE Ingatlanfejleszto Europai Rt is a Hungary-based company engaged in the real estate operations. The Company operates as a holding and provides management, financial and administrative services to its subsidiaries. As of December 31, 2011, the Company operated two subsidiaries, Grpahisoft Park Kft, engaged in the real estate development; and Graphisoft Park Services Kft, responsible for property operation tasks. The total area of the Company's properties was nearly 18 hectares. As of December 31, 2011, the Company's two subsidiaries, Graphisoft Park Universitas Kft and GP3 Kft merged into Graphisoft Park Kft. As of December 31, 2011, the Company's parent entity was Graphisoft SE.
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