On Friday, the supervisory board of IMMOFINANZ AG approved the commencement of preparations for a squeeze-out of S IMMO, where all shares held by minority shareholders are going to be transferred to IMMOFINANZ against appropriate cash compensation.

Together with its parent company CPI and including the treasury shares of S IMMO, IMMOFINANZ currently holds 92.54% of the share capital. The cash compensation for the remaining shares will be determined based on a valuation report to be obtained. In a shareholder meeting, which is expected to take place in autumn ’24, IMMOFINANZ will then submit the squeeze-out for approval.

While we already anticipated this to happen (see

update

from 02/24), but were not certain about the timing of the process, now only the amount of the cash settlement needs to be determined. As this will be based on an external valuation, it still remains subject to a certain degree of uncertainty. We hence keep our PT unchanged at € 19 but change our recommendation to HOLD. However, given a BV of € 23.66 per share and an NTA of € 25.17 per share, our PT should be positioned at the lower end of the anticipated range.

Besides that, the company yesterday also released solid Q1 figures, showing a strong increase in both rental income (+23% yoy to € 58.4m) and FFO (+29% to € 32.3m). The strong improvement of the key metrics can be mainly attributed to the acquisition of large portfolios in Eastern Europe, while simultaneously disposing lower yielding properties in Germany. Overall, the strong development of the operational business should provide further confidence for investors regarding the upcoming squeeze-out process.