Märkte & Kurse

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Original-Research: www.warimpex.com - from East Value Research GmbH

20.09.2024 / 06:25 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group AG.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of East Value Research GmbH to www.warimpex.com

     Company Name:                www.warimpex.com
     ISIN:                        AT0000827209

     Reason for the research:     Update
     Target price:                EUR 1,60
     Target price on sight of:    12-months
     Last rating change:
     Analyst:                     Adrian Kowollik

Warimpex' (WXF) Q2/24 results were negatively affected by write-downs of
receivables and a loss from remeasurement of investment property of EUR
9.9m, which in our view were both related to the company's Russian
properties. However, total revenues (+4% vs. -6.3% y-o-y in Q1/24) and
EBITDA margin (34.6% vs. 31.3%) showed an improvement q-o-q. In H1/24, the
main issue was the Investment properties segment, which continues to be
negatively affected by a weak Russian rouble. Based on WXF's latest
financial report, we have slightly increased our revenue estimate by c. 3%
but slashed our profit estimates for 2024E-2025E again. Nevertheless, due to
a higher peer-group-based fair value (EUR 1.52 vs. EUR 1.44 before) our
12-months PT (50% NNNAV that we have additionally discounted by 50% due to
the exposure to Russia, 50% peer group) for Warimpex goes up to EUR 1.60
(previously: EUR 1.58). While ECB's rate cuts make raising debt for WXF
cheaper and increase the likelihood of rising property prices, the biggest
issue remains the company's exposure to Russia, where it still has 36% of
its Gross Asset Value and where, in our view, it generates by far the
highest rental yields of c. 15%.

In H1/24, the main factors affecting Warimpex' results included: 1. Higher
occupancy rates in the Hotels segment 2. Weaker Russian rouble 3. Higher
operating costs 4. Write-downs of trade receivables and 5. Loss from
remeasurement of investment property. Total revenues equalled EUR 26m (-1.1%
y-o-y) and EBITDA was 23.8% below last year. Due to the remeasurement loss
EBIT and net income declined to EUR -2.1m and EUR -8.8m respectively. At the
end of June 2024, WXF had net debt of EUR 216m (31/12/23: EUR 210.3m,
30/06/23: EUR 213.3m). In July, it sold the MC55 office development project
in Bialystok with, we believe, a profit of c. EUR 700k.

While its Mogilska 35 office building that was opened in Q4/23 will likely
be fully occupied by the end of 2024E, Warimpex now concentrates its
development activity on the Chopin (in Cracow, with a building permit), West
Yard (Darmstadt, building permit likely in H2/24E) and Mogilska IV (Cracow,
least developed) projects. WXF will start the construction of the projects
with a building permit at a suitable time, dependent on market conditions.


You can download the research here: http://www.more-ir.de/d/30823.pdf
For additional information visit our website: https://eastvalueresearch.com/

Contact for questions:
Adrian Kowollik
Tel.: +49 30 20609082
Email: ak@eastvalueresearch.com

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1991967 20.09.2024 CET/CEST

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