Shopper Park Plus: shopping for yield (HOLD – initiation of coverage)
We initiate coverage of Shopper Park Plus (SPP) with a HOLD and a 12M price target (PT) of EUR 12.0/share. SPP owns a c.EUR 425m portfolio of Tesco-anchored, mostly big-box retail assets in Hungary, Slovakia and the Czech Republic. Most of the properties were developed by Tesco and are located on the edges of regional towns. The portfolio is booked at a 7.0% EPRA net initial yield (NIY). With a net LTV of 43% and a c.5% all-in cost of debt, we expect SPP to achieve c.EUR 13m of FFO I in 2025E, a 6.0% FFO ROE on the EUR 211m 3Q25 NAV. We expect the earnings to grow, driven by: 1) the full contribution of the Slovakian properties, acquired in 2025E; 2) entry into Poland via the acquisition of eight properties, closing expected in 1Q26E; 3) a gradual increase in occupancy, as SPP leases out the premises returned by Tesco and other vacant units; and 4) rental growth, driven by turnovers and indexation. By 2026-27E, SPP’s FFO could reach EUR 25-28m p.a., or a c.8% FFO ROE on the last reported NAV, on our estimates.
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.
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