CA Immobilien (AO) | Hold | Ongoing successful non-core disposals

Research evidence excerpt

CA Immobilien (AO) | Hold | Ongoing successful non-core disposals

CA Immobilien Hold | Target Price: EUR27.50

Company description Management

CA Immobilien Anlagen is a leading office player with a modern, energy-efficient Keegan Viscius, CEO

portfolio located in key cities in Germany, Austria and CEE. It also owns an Dr. Andreas Schillhofer, CFO

attractive development pipeline, mainly located in Germany. The company either

transfers completed projects to its own portfolio or sells them. The company Key shareholders

covers the entire value chain give its high degree of in-house development, Free float 29.00%

Starwood 71.00%

property and asset management expertise.

Investment case Valuation methodology

CA Immo holds an attractive property portfolio of mainly We value CAI using the blended outcome of a DCF model, a

modern and energy-efficient office assets in large German cities, discounted dividend model (DDM), a 90% long-term payout

particularly in Berlin, and key Central European large cities, ratio, 2% long-term growth, COE of 8.0%), and a discounted NTA

such as Munich, Vienna, or Prague. In its main market Germany, model.

its portfolio has significant rent reversion potential. Key assumptions for the DCF model are: an EBITDA margin of

CA Immo offers almost unique exposure to real estate 72%, long-term growth of 2% and a WACC of 6.08% and for the

development in Germany through its large land bank located in DDM: a 90% long-term payout ratio, 2% long-term growth and

attractive city centres in Munich, Berlin, Frankfurt, and COE of 8.0%)

Dusseldorf. Risks to our rating

The successful execution of the development pipeline could fuel A persisting weak economic environment could hit office

long-term FFO and NTA per share growth. demand, rents, and property asset values.