First Berlin – Godewind Immobilien AG Research Update (25/03/2020)

First Berlin Equity Research has published a research update on Godewind Immobilien AG (ISIN: DE000A2G8XX3). Analyst Ellis Acklin reiterated his ADD rating and maintained his EUR 6.40 price target.

Full year results were close to our expectations. Net rental income climbed to €31m in 2019 with FFO 1 of some €9m. The good performance owes to both portfolio expansion and operational measures that included strong vacancy reduction across the value-add assets. NAVPS rose to €6.1 vs €3.7 at YE18, while the portfolio value amounted to €1.1bn. In February, Godewind and Covivio X-Tend AG concluded a Business Combination Agreement (BCA), under which the latter launched a voluntary public takeover offer for 100% of Godewind's share capital. Despite the current market turbulence, the offer remains on track to wrap up in mid-May and GWD shares will be delisted. Our rating remains Add with a €6.4 target price.