Ahead of H1 results on 15 August, Q1 showed the success of Rcm Beteiligungs' (DE:RCMN) strategic focus on certain well-defined projects. Quarterly PBT of €2.3m, which alone exceeded full-year 2017 thanks to a c €11m development sale, all but guarantees guidance of more than €3m PBT in 2018. Driven by favourable macro factors and scope for efficiencies, asset development and appreciation, RCM’s positive outlook is reflected in confirmation of a 50% dividend hike for last year. Solid finances (almost 5x 2017 interest cover and an above industry-average equity ratio of 40%+ at March 2018) provide ample scope for reinvestment after Q1 disposals.
Acceleration in H217
RCM built on a good start to the year (H117 PBT up 11%) with a strong second half (PBT up 16% to €1.4m against €1.2m in H216). The period saw sustained buoyancy, boosted by the initial consolidation of a project company, which made a notable c 4,000m² disposal. Further to its goal of growing recurrent revenues, despite asset sales rental income was almost maintained thanks to enhanced rent per square metre (4% for the year). This was complemented by another significant reduction in rental admin costs (down 20% like-for-like in 2017). Reluctance to pay up in the face of sharp property price rises (no additions in 2017) explains the reduction in the year-end portfolio from c 50,000m² to c 38,000m .
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