Ascencio (1K) | Hold | Priced in

Research evidence excerpt

Ascencio (1K) | Hold | Priced in

Ascencio Hold | Target Price: EUR55.00

Company description Management

Ascencio is a public regulated real estate company (Belgian REIT) that invests in Vincent Querton, CEO

out-of-town retail properties in Belgium, France, and Spain. Its main aim is to Cédric Biquet, CFO

assemble, manage, and grow a portfolio of peripheral retail properties that

ensures steady, long-term growth as a result of location, as well as tenant quality Key shareholders

and diversification. The company has a solid track-record of growing its dividend Free float 84.62% Patronal Life SA 5.00%

despite limited external activities. Carl Eric and John Mestdagh and Fidagh S.A. 10.38%

Investment case Valuation methodology

Ascencio is a Belgian regulated real estate company that invests We value Ascencio based on a blend of DCF and NAV: 70% DCF

in out-of-town retail. Ascencio has maintained significant (WACC 8.2%, OM 82%) and 30% three-year NAV-based model, to

exposure to food retailers (c.40%). which we apply a 10% haircut to the final NAV, which points to a

Supermarkets are anchor tenants for retail parks and are better TP of EUR55.

able to resist e-commerce challenges by offering Our DCF takes into account a 10% liquidity discount to reflect

complementary services. With low tenant turnover and long- the company's limited share price liquidity.

term leases, these supermarkets offer stable rental growth that Risks to our rating

is indexed to inflation, which guarantees dividend sustainability. Potential negative rental reversion of leases upon expiry, limited

Since its IPO in 2007, FFO has increased steadily, thanks to a or negative LFL.

stable tenant base. This translates into good visibility on rental Selective acquisitions could attract interest to the stock.