Last week, CR Capital released strong preliminary FY 2022 figures, showing a further acceleration of growth. FY 22 EBIT increased by c. 14% to € 76m, exceeding our estimate of € 69.8m. On top of that, the company continued to be highly cash generative, as operating cash flow increased by 17% yoy to € 16.8m, equaling € 3.70 per share. The equity ratio remained on a strong level of 97%.

Based on the strong numbers, management intends to propose a dividend of € 2.50 per share, indicating a 8.3% yield given yesterday’s close price. Like in the years before, we expect that shareholders will be able to choose between a cash dividend and a stock dividend.

CR Capital is seen to have been a major profiteer of the increasing demand for sustainable energy and housing solutions. Here, together with its holding companies, CR Capital is offering smart solutions for quality and cost-optimized living space.

With its current projects, the company continues to implement the strategy of connecting residential districts to decentralized and compact infrastructures with renewable energy supplies. In recognition of its strategic alignment, CR Capital was awarded with an ESG rating of “very good” by imug.

The current pipeline extents to 50,000 sqm of living space with energy supply systems connected in part. On top of that, a 6 GWh agri-PV plant is currently in the planning stage, executed by the newest shining star in CR Capitals portfolio: Solartec. Importantly, CR Capital’s portfolio companies are not affected by increased input costs, as all project costs have been fixed.

Overall, the company’s current development once again underpins the significant synergies, created by CR Capital’s portfolio companies. Notably, CR’s third portfolio company CR Opportunities (CRO) is also playing a crucial role, as it provides equity financing for Solartec. Moreover, CRO will soon launch a fund for semi-professional and professional investors and is working on additional PE offerings with the goal to create atractive investment and retirement options for a broader segment of the population.

Going forward, CR Capital looks set to continue its profitable growth path, as demand for green real estate should increase even further, especially among institutional investors, in our view.

Remains a BUY with a new PT of € 52.00 (old: € 62.00) based on DDM.