First Berlin – Godewind Immobilien AG Research Update (14/08/2019)

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 5.90 price target.

Six month results were in line with prelims published 23 July and our expectations. Rental income climbed to €11.5m in H1/19 with FFO 1 of some €2.8m. Net income for the six month period topped €73m, thanks in particular to strong revaluations in Q2 spurred by vacancy reductions. NAVPS rose to €4.5 vs €3.7 at YE18, while the portfolio value, including City Gate, amounted to €950m on a pro-forma basis (H1/19: €855m). Management confirmed full-year guidance for FFO 1 of €8.5m to €9.5m. We expect an even stronger H2 with greater portfolio contributions and further tenant wins to reduce vacancies. Our rating remains Buy with a €5.9 price target.