Q3 results show Rcm Beteiligungs AG (DE:RCMN) to be in fine form. A rise of over 50% in pre-tax profit accompanied confident guidance both for this year (proposed 50% hike in the dividend) and 2018 (targeted pre-tax profit to exceed €3m). A recent €11m bumper development sale epitomises a successful focus on certain well-defined projects, which is clearly paying off in terms of efficiencies as well as asset development and appreciation. We are further encouraged by the resumption of the share buyback programme and continued enhancements to the group structure, which should aid transparency.
Solid Q317
RCM built on a good start to the year (H1 PBT up 11%) with a strong Q3 (PBT up 54% to €0.91m against €0.59m). The quarter to September saw sustained buoyancy, boosted by the initial consolidation of a project company and a further significant reduction in administration costs (YTD down 23%). Rental income almost held steady, reinforcing another key component of RCM’s business model ie building recurrent income. It owns c 49,000 square metres of residential assets (646 units) in its core Saxony region, with a purchase price of almost €35m.
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