WOOD Flash – Graphisoft Park: 4Q22 – 0.5x P/NAV, 15% FFO yield, 6% dividend yield, stays BUY (PT changed to EUR 10.5)
Trading at 0.5x P/NAV and a 15% FFO yield, and offering a 6% dividend yield, Graphisoft Park remains one of the most attractively valued names in the CEE real estate universe, in our view – albeit relevant for only a limited number of institutional investors, due to its small size and low liquidity. While we expect to see further market-wide upward pressure on yields, with an LTV of 36%, the risk for Graphisoft Park’s balance sheet is low. Going forward, Graphisoft Park may continue to de-risk via deleveraging. If there is demand for space from its tenants, it may expand its portfolio via developments in the Southern part of the Park, which could drive growth in the FFO. In the absence of developments and a reduction of leverage, we would see room for substantially higher dividend payments, with the dividend yield in double digits at the current share price. A takeover bid and the decontamination of the Northern Area of the Park – while neither perhaps likely in the near term – remain potential upside triggers. We reiterate our BUY rating (with our price target (PT) changed to EUR 10.5/share, following the switch in the trading currency to EUR, from HUF, this month).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.
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.
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