Immofinanz, majority shareholder announced yesterday, that company is taking advantage of the attractive share price of Immoeast shares. Immofinanz ‘s stake is set to increase from 50.46% to 54.90%, which represent increase by 37,021,791 shares. Immofinanz stated to buy shares over the past few days and expects to continue over this week and beyond, should the share price remains attractive.
Our view: Immoeast currently trades at EUR 8.56 implying 16% discount to its NAV of EUR 10.2/share, which is the largest discount among its peers. From our point of view, the recent decline in the share price is exaggerated and has been driven by sentiment rather than Immoeast’s fundamentals. We believe that if company is able to make value creative deals, which enables it to book revaluation gains, such a company deserves to trade at premium, however lower than pure developers. We see the announcement about Immofinanz’s activity as a positive short term catalyst for the stock. The news came out yesterday morning during a trading session, therefore we believe the market has already priced it in as the stock jumped 3.88% yesterday.