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Original-Research: Warimpex Finanz- und Beteiligungs-AG - from East Value
Research GmbH

03.12.2024 / 13:46 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group AG.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

Classification of East Value Research GmbH to Warimpex Finanz- und
Beteiligungs-AG

Company Name: Warimpex Finanz- und Beteiligungs-AG
ISIN: AT0000827209

Reason for the research: Update
Recommendation: BUY
from: 03.12.2024
Target price: EUR 1
Last rating change:
Analyst: Adrian Kowollik

While the sale of Russian assets (in total 53,100 sqm) that was announced on
October 31 led to a one-off loss of EUR 30.3m, we believe that the
transaction is very positive for shareholders as it removes the biggest risk
associated with an investment in Warimpex. Management now plans to fully
concentrate on the development of its office projects in Poland (Cracow) and
Germany (Darmstadt). Based on WXF's equity position as of 30/09/2024, the
stock is currently trading at a P/BVPS of just 0.4x. Given much lower
business risk, an improving market environment for real estate companies and
mostly long-term interest-bearing debt, we now recommend to BUY Warimpex's
shares with a new 12-months PT (50% NNNAV, 50% peer group) of EUR 1 (prev.
EUR 1.60). Our new estimates reflect the sale of Russian assets, which in
H1/24 made up c. 36% of Gross Asset Value and accounted for c. 41% of
Warimpex' total revenues. While the company's net gearing remains high, its
hotels and offices generate predictable cash flows.

In its 9M/24 report, Warimpex shows revenues and profits excl. Russia and
assets and liabilities from discontinued Russian operations of EUR 88m and
EUR 63.6m respectively. Total revenues equalled EUR 15.7m (+13.2% y-o-y),
whereby Investment Properties grew by 9.5% y-o-y and Hotels segment by 4.7%.
Due to a remeasurement loss of EUR 5.9m and the loss from discontinued
operations EBIT and net income declined to EUR -6m and EUR -42.8m
respectively. At the end of September 2024, WXF had net debt (incl.
discontinued assets & liabilities) of EUR 130.8m (30/06/2024: EUR 216m,
31/12/2023: EUR 210.3m) and equity (excl. minorities) of EUR 77.2m
(30/06/2024: EUR 117.6m, 31/12/2023: EUR 121.9m).

After the sale of 4 commercial buildings & 1 hotel in St. Petersburg as well
as the MC55 office development project in Polish Bialystok, Warimpex now
still has offices in Cracow, Lodz and Budapest, 1 hotel in Darmstadt as well
as 3 office projects under development (Chopin & Mogilska IV in Cracow, West
Yard in Darmstadt). While Chopin and West Yard already have a building
permit, Mogilska IV is the least developed project. Construction work will
start dependent on market conditions.

You can download the research here: http://www.more-ir.de/d/31477.pdf
For additional information visit our website: https://eastvalueresearch.com/

Contact for questions:
Adrian Kowollik
Email: ak@eastvalueresearch.com

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2043387 03.12.2024 CET/CEST

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