3Q13 results confirm our positive call

The 3Q13 results released yesterday morning fully confirmed our positive picture. As the results were just a touch above our estimates, we only fine-tuned our forecasts. The main reason for the increased target price of EUR 6.0 (after EUR 5.7) is the compounding since our last research report in May. We confirm our Buy call on S IMMO.

Management gave a positive outlook and stated that they expect a ‘strong performance’ in 4Q13. They also confirmed that they expect an increased result for the full-year and stated their intention to raise the dividend further.

The peer group comparison fully confirms our positive opinion on the  S IMMO stock. The stock is traded at 9.5x FFO 2, even though the main part of the selling gains is included under the general revaluation result (and therefore not part of the FFO).

The significant growth in BVPS and NAV per share is supported by (1) the currently running share buyback program; and (2) by the positive effect from the valuation of financial instruments (shown in the shareholders’ equity without a P&L impact).