First Berlin – Godewind Immobilien AG Research Update (08/05/2019)

First Berlin Equity Research has published a research update on Godewind Immobilien AG (ISIN: DE000A2G8XX3). Analyst Ellis Acklin reiterated his BUY rating and maintained his EUR 5.50 price target.

Godewind published an operational update on the letting progress of its flagship office property – Frankfurt Airport Centre (FAC) with 48k m? of lettable area. A new rental agreement reduces the property's 20% vacancy rate by some 60% down to 8%. In our view, the milestone confirms the company's ability execute on the value-add component of its portfolio with 39% vacancy to optimise. Q1 results are due this week, but we believe six month reporting in August will be a better gauge of operating performance, due to several late closings that have yet to impact earnings. We reiterate our Buy rating and €5.5 price target.