Inbox: Warimpex für die RCB jetzt ein Buy

Significant earnings upgrades: Given the upbeat statements of the management we now incorporate EUR 67 mn of construction costs for the two office developments which are currently being built in Poland, spread over 2017e and 2018e. As a consequence, we have also raised our gross debt and interest cost projections accordingly over the entire forecast horizon. We raise our rental income projections by between 17% and 37% over the entire forecast period based on the assumptions that both office developments 1) will be finished according to plan, 2) will be rented at market comparable rents and 3) will achieve an occupancy rate of more than 80%. Furthermore we now also expect property re-valuation gains for these developments in 2018e and 2019e following the construction progress.
 
Cash-return to shareholders: The net debt of Warimpex declined significantly to EUR 105.1 mn (net gearing of 104%) and the liquid funds soared to EUR 46 mn thanks to the closing of the disposal of eight hotels in 2Q 17. These numbers represent a major improvement from previous levels because the net LTV was 60% in 2Q after 87% at 4Q 16. As a result, the group is now in a position to resume the payment of dividends, something that was confirmed by the management at the last AGM. Moreover the group also received shareholders approval to conduct a share buy-back program. We maintain our existing DPS forecasts of EUR 0.05 for 2017e and the years thereafter.