Consus Real Estate - Termination of coverage

Edison Investment Research is terminating coverage on: • 2G Energy (2GB) • Apontis Pharma (APPH) • Artec technologies (A6T) • Beta Systems (BSSA) • Blue Cap (B7E) • Cyan (CYR) • Consus Real Estate (CC1) • Daldrup & Soehne (4DS) • DATAGROUP (D6H) • Datron (DAR) • Delignit (DLX) • Deutsche Börse (DB1) • Deutsche Grundstücksauktionen (DGR) • Deutsche Rohstoff (DR0) • DVS Technology (DIS) • Edel (EDL) • Ernst Russ (HXCK) • Exasol (EXL) • expert.ai (EXAI/EXSY) • Fashionette (FSNT) • Formycon (FYB)

Consus Real Estate - Acquired by ADO Properties

On 29 June 2020, Consus Real Estate announced that ADO Properties is taking control of Consus following the exercise of its call option, bringing its total stake to over 75%. Consequently, Consus will shift its strategy from pure property development to a build-to-hold model. At end-June 2020, adjusted for recent disposals, its portfolio consisted of 39 projects with a gross development value (GDV) of €8.0bn, including c €2.6bn in forward-sold projects. As some initially planned new forward/ upf

Consus Real Estate - Deleveraging as COVID-19 delays expansion

Consus Real Estate’s investment portfolio has more than doubled over the last two years, to a €12.3bn gross development value (GDV) at the end of FY19. This period included the end-2018 acquisition of SSN, contributing to the high end 2019 net debt of €2.7bn. While management states in its annual report that the coronavirus outbreak may not have a material impact on its business, it is, nonetheless, focusing efforts on deleveraging and restructuring the relatively expensive debt. Consequently, C

Consus Real Estate - Embracing the ‘build-to-hold’ business model

On 15 December, Consus announced that Ado Properties had acquired a c 22% stake in the company for €294m in cash. The purchase price of €9.72 per share represents a c 58% premium to the closing price of €6.15 on 13 December. As a result, Ado’s current holding is c 25%, with a call option for a further 51% stake. On exercise of the option, Ado intends to make an exchange offer for the remaining shares. The announcement follows the agreed merger of Ado and Adler Real Estate and will make it the th

Consus Real Estate - Continued project portfolio ramp-up

Consus Real Estate has further expanded its project portfolio with four acquisitions of development projects with c €1.2bn of gross development value (GDV) signed so far this year. As a result, it currently holds 68 projects in its portfolio with GDV exceeding €10bn. Importantly, 25 projects have already been forward sold and thus contributed to Consus’s earnings in H119. Together with nine projects under forward sale negotiations, they account for c 28% of portfolio GDV. The recently introduced

Consus Real Estate - Ready for take-off

In FY18 Consus completed its transformation into the largest listed pure-play residential real estate developer in the top nine cities in Germany and will now focus on optimising its operations. With a relatively young portfolio representing €9.6bn of gross development value (GDV), Consus expects a significant increase in earnings as key projects progress beyond the planning stage. The strong forecast consensus earnings growth in 2019–2021 should be further assisted by improving rental income mu

Consus Real Estate - Largest development platform in Germany

Consus has solidified its position as the largest residential property developer in Germany with the acquisition of SSN Group (SSN) financed through a combination of cash and equity. The transaction will increase the company’s portfolio to €9.6bn gross development value (GDV), 82% of which is expected to be forward sold. We believe that this transaction constitutes an important step in building a strong, well-diversified portfolio and should lead to favourable synergies given the high business p

Consus Real Estate - Full commitment to residential real estate

In H118 Consus completed its transformation into a pure-play, residential real estate developer focused on the forward sale operating model. It keeps a stable share of forward sold investments within its portfolio at c 26%, despite expanding its gross development value (GDV) by 37.4% ytd to €6.2bn. The company has implemented IFRS 15 into its accounting policies to better reflect recognition of income from property development. Ability to deliver results in line with the expected significant bot

Consus Real Estate - Well-positioned to accelerate growth

As Germany’s recently established largest residential developer, Consus already has an unrivalled €5.3bn pipeline of low-risk projects, which are strategically located in cities where robust demand for its end-product is underpinned by long-term undersupply. The forward sale of its developments to institutional investors provides revenue and cash flow visibility, while also limiting funding requirements. The shares trade at a 26% P/E and 50% EV/EBITDA discount vs the peer group based on FY19 con

LIBERUM: Plus500: Strategic progress pays dividends

Tatton Asset Management (TAM LN) - Record net inflows

Tatton, the leading on-platform discretionary fund manager (DFM) and IFA support services Group has released a trading update ahead of its results to 31 March 2024, due on 18 June 2024.

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no

Ondo InsurTech FY24 Trading Update

Ondo InsurTech has released a brief post-YE update revealing its good progress continued through 2H24 and consequently FY24 will be in line with market expectations.

Foxtons Group (FOXT LN) - 1Q24 IMS shows real momentum

Foxtons Group plc first quarter revenue rose 9% to £35.7m (1Q23: £32.9m) with growth delivered across all business segments. Trading is in line with management's expectations.

BlackRock World Mining

BRWM’s managers: we see all the classic signs of high commodity prices...

Morning Note – 18 April 2024

NextEnergy Solar Fund - Attractive Refinancing

The refinancing of a £135m revolving credit facility and the extension of a similar £70m facility gives NESF firepower as development opportunities for new solar are especially attractive thanks to lower module prices in Europe. They give the fund key financial flexibility at a critical time as it pursues its capital recycling programme.

Foxtons Group - FY24 underpinned by market share gains

Foxtons Group’s Q1 revenue grew by 9%, supported by growth in all three divisions as the strategic initiatives continue to gain significant momentum, driven by investment in staff, best-in-class bespoke IT and data platforms. This implies that Foxtons’ medium-term targets are now coming into focus. Market share is being gained in all divisions, which puts Foxtons in a good position as the sales market stabilises. We maintain our valuation of 132p/share and believe that if interest rates stabilis

NextEnergy Solar Fund – High- and growing-income opportunity?

NextEnergy Solar Fund (NESF) is almost 10 years old. Since launch, it has built a £1.2bn, 933MW portfolio of 100 operating solar assets, powering the equivalent of over 330,000 homes, declared dividends totalling £333m, and avoided the emission of about 2.2 Mt CO2e. NESF is on track to pay 8.35p in dividends, with forecast dividend cover of about 1.3x. Share price weakness that has afflicted the whole sector means that dividend translates to a yield of 11.1%, one of the highest in its sector, a

The Hardman & Co Monthly: April 2024

Feature article: Steady as she goes, but could be better: A review of investment company liquidity since 2016 Liquidity is the lifeblood of equity markets. The measurement of liquid asset availability to a market or company is a way of gauging a market’s health. This article builds on our previous work, which analysed the liquidity data for non-financial trading companies, by applying the same analytical techniques to the investment companies (IC) space. We analyse liquidity for ICs as a whol

Initial Equity Trading Comments - 19 February 2024

M Winkworth+ (WINK, House Stock at 163p) - Solid FY23A results, well placed to grow

Hybridan Research: Sector Review: Artificial intelligence in UK cybersecurity: the human uplift 17/04/2024

Artificial intelligence (AI) is a double-edged sword in cybersecurity. Whilst new AI models, architectures, and innovations are emerging to protect the security posture of organisations, attackers are also benefiting from deepfakes, sophisticated phishing, and automation of malicious codes. To ensure the impact of AI on cybersecurity to be a net-positive, we need to pit good AI against bad AI. Point solutions enhanced with machine learning: Global cybersecurity has been built with point soluti

Resilient FY24, confident long-term outlook

Vp’s full year update highlights sector-leading results, once again benefiting from the diversity of its end markets and the quality of its specialist businesses. With results expected to be broadly in line with expectations, we trim our FY24 PBT forecast by c.5% to £39.0m, a shade below the FY23 outturn (£40.2m). We consider this an impressively resilient performance set against a mixed market backdrop. Under new leadership, a strategic refresh is underway and management is confident in long