^Original-Research: Coreo AG - von GBC AGEinstufung von GBC AG zu Coreo AGUnternehmen: Coreo AGISIN: DE000A0B9VV6Anlass der Studie: Research study (Anno) 1Empfehlung: BUYKursziel: 1.30 EURKursziel auf Sicht von: 31.12.2024Letzte Ratingänderung: Analyst: Cosmin Filker, Marcel Goldmann- FY 2022 was marked by portfolio optimisation- Postponed investments should be realised in 2024- Break-even expected from 2024 In the past financial year 2022, Coreo AG's focus was on active assetmanagement of the existing portfolio, whereas no new investments were madefor the first time since the start of real estate-related businessactivities. In particular, the delay of the acquisition of the largestportfolio in the company's history, which had been planned since 2021, wasresponsible for this. In this respect, the focus of business activities wason extensive refurbishments and conversion measures at existing propertiesin Kiel, Wetzlar or Bruchsal. Nevertheless, a significant increase in gross rental income to EUR 5.97million (previous year: EUR 4.35 million) was achieved, in particular due tothe first full-year inclusion of properties acquired in 2021. In addition,rental increases were achieved in the existing portfolio and vacancies inthe refurbished properties were reduced. On the other hand, proceeds fromdisposals fell to EUR2.89 million (previous year: EUR10.32 million). Theseprimarily include the complete sale of the Mannheim portfolio and someproperties in the Göttingen portfolio. As a result, total income of EUR10.38million (previous year: EUR16.53 million) was below the previous year'slevel, but above our expectations (GBC forecast: EUR7.99 million) due tohigher than expected proceeds from disposals. The decline in earnings is also reflected in the drop in EBIT to EUR 0.98million (previous year: EUR 2.84 million). This was lower than we expecteddue to higher maintenance measures (GBC forecast EBIT: EUR 2.63 million).Based on this, Coreo AG was once again unable to reach break-even at thelevel of the after-tax result. At present, the company's rental income isstill too low to cover its operating expenses, but it is still notsufficient to cover its financial expenses. The current P&L picture should only change with the expected expansion ofthe rental portfolio. One possible property acquisition that is likely tohave a relevant influence on the company's revenue and earnings developmentis the transfer of the so-called Spree East portfolio, for which a purchaseagreement was already reached in 2021. According to the company'sannouncement at the time, the portfolio comprises a total of 1,341 flatsand 15 commercial units, which would make it the largest acquisition in thehistory of Coreo AG. Although the company is currently still innegotiations, we assume that the acquisition will not take place until thecoming financial year 2024. Likewise, an exclusive agreement for thepurchase of a portfolio in Hagen/Rostock with an investment volume of EUR 2.5million was concluded in July 2022. Assuming the expected addition of these portfolios and after taking intoaccount further investments in the coming financial years, rental income,which will then be the most important earnings variable, should graduallyincrease to EUR 6.53 million (2023e), EUR 9.56 million (2024e) and EUR 12.36million (2025e). From the coming financial year onwards, these should beenough to reach the break-even point at the level of the after-tax result. Within the framework of our DCF valuation model, we have determined a newtarget price of EUR 1.30 (previously: EUR 1.85). Compared to our previousvaluation, we have made a significant forecast adjustment. On the one hand,we expect a slower build-up of the portfolios. On the other hand, rentalincome is more important than in our previous forecasts. Compared to thetrading business, this is accompanied by lower revenues, but at the sametime there should be higher profitability. The weighting of capital costsis also shifting towards debt capital, which has led to a reduction in theWACC. We continue to give the rating BUY. Die vollständige Analyse können Sie hier downloaden:http://www.more-ir.de/d/27345.pdfKontakt für RückfragenGBC AGHalderstrasse 2786150 Augsburg0821 / 241133 0research@gbc-ag.de++++++++++++++++Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (4,5a,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung+++++++++++++++Date and time of completion: 14.07.2023 (08:47 am)Date and time first distribution: 14.07.2023 (11:30 am)-------------------übermittelt durch die EQS Group AG.-------------------Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw. Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatungoder Aufforderung zum Abschluss bestimmter Börsengeschäfte.°