DeA Capital (MI:DEA) experienced slightly weaker assets under management (AUM) in H118, driven by Q2 liquidation of real estate assets by maturing funds, but management expects this to reverse in H2. The returns on co-investment in funds managed were very positive, generating NAV gains and strong cash flow to support the continuation of attractive distributions and further investment in growth of the alternative asset management (AAM) platform. The shares are yielding more than 9% and trade at a discount of more than 30% to our adjusted NAV of €1.91 per share.
Strong H1 cash flow
AUM was c €11.2bn at end-H118 (FY17: €11.7bn) with real estate AUM (€9.0bn vs €9.5bn) experiencing asset liquidations by some funds reaching maturity. Management expects a positive trend in H2, from new funds. The returns on co-investment in funds managed were positive, generating NAV gains and a net cash inflow of €31.0m in H118, and almost €40m more by early September. The net financial position increased by €25.1m (to €86.9m/€0.34 per share) after adjusting for €30.5m/€0.12 per share of distributions. NAV per share increased to €1.87 (FY17: €1.80 adjusted for distributions paid since).
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