Last week, EVDI launched its new automated investment function that enables investors to reserve the desired investment amount of a project even before the official start of the project.

With this new feature, customer can specify characteristics such as investment amount per project, desired interest margin, risk class, property type and financing term. As soon as upcoming projects on the EVDI platform match the investors preferences, they will automatically receive a mail with the option to finally confirm the suggested investment. The chosen investment amount of the investor is reserved on the launch day of the project.

In our view, this function is not only increasing financing speed of projects, but also simplifying investors' access to suitable investments. Since many projects on the platform are sold out after minutes, investors have a higher chance to participate suitable projects by using the new function.

Even better, by using the new automated investment function, investors are signaling EVDI what characteristics are in demand. This is helping EVDI to source suitable projects. At the same time, EVDI has a higher certainty to successfully place a project.

With the new function, already one third of the € 2.05m financing volume from the most recent project “DFI Zukunftspark Oberfranken II” (7% interest p.a.; 8 month financing period) was placed in advance. The whole project was financed in just 7 minutes. Earlier this year, EVDI financed the project “Office am Europaring III” in Ratingen (€ 2.75m financing volume, 5.7% interest p.a., 12 month financing period). With the recent two closings, EVDI had a good start into the year. Still, a further acceleration is necessary to reach expected transaction volumes (eNuW: € 71.8m) and sales (eNuW: € 7.8m) in FY23. The new automated investment function should help.

Beyond 2023, the expected growth should come mainly from prospective regional expansion to other European countries, further new product features and the ongoing market penetration in a long-term growing market. Thanks to the scalable platform business model, EBIT margin is seen north of 20% in the mid- to long-term (eNuW: FY´25E), which is in line with management long-term vision (20% margin).

BUY with an unchanged PT of € 9.50 based on DCF.