FY16 saw good growth in its alternative AUM, positive performance from fund investments, offsetting weakness at Migros, the retailer quoted in Turkey, and a robust holding company net financial position after €31.6m in dividends (€0.12 per share), a level that DeA Capital (SG:DEA) will maintain in 2017. The shares continue to trade at a wide discount to both NAV and our assessment of fair value. Returning momentum to asset management and a diverse investment portfolio have the potential to create further value, while the prospect of cash inflows as private equity fund investments mature provides a measure of protection against any rise in market volatility.
AUM growth accelerates in Q4
DeA’s AUM returned to growth with real estate up by a healthy €0.7bn in Q4, taking overall AUM for its existing alternative asset management activities to €10.6bn compared with €9.5bn at end FY15. The SPC (debt recovery) business acquired in July adds €0.7bn. Adjusted for the €0.12 of dividends paid during the year, NAV per share grew from €1.95 to €2.03, driven by asset management profits and gains in the fair value of the IDeA I and IDeA EESS funds, in particular offsetting year-end weakness in the value of the Turkish retailer, Migros.
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