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

Research GmbH

06.06.2025 / 11:24 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQ

Group.

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.

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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

Target price: EUR 1.12

Target price on sight of: 12-month

Last rating change:

Analyst: Adrian Kowollik

After reporting disappointing full-year 2024 results compared to our

estimates from early April, Warimpex (WXF) delivered a solid set of number

for Q1/25. On a comparable basis - excluding the Russian assets sold in

Q4/24 - results were above the previous year across all levels. Q1/25

revenues benefited from the Mogilska 35 office building in Cracow, which i

now fully occupied (31/12/2024: 71%). On the other hand, the 20.3% decline

in revenues from the Hotel segment was, in our view, due to a generally weak

hotel market in Germany and the cessation of payments from the city of

Darmstadt for lodging Ukrainian refugees. This reduced the occupancy rate of

WXF's greet hotel to 44%, down from 57% in the previous year. For Q2-Q4, we

expect the trends observed in Q1/25 to continue. Additionally, management

anticipates receiving the building permit for its Mogilska 31 residential

project in Q3/25E, with construction expected to begin shortly thereafter.

Warimpex estimates the project's total cost at c. EUR 30m, and we expect

completion about 1.5 years after construction starts. Based on lower

estimates and an updated peer-group-based FV (EUR 0.73 vs. EUR 0.68

previously), our valuation model yields a new 12-month PT (50% NNNAV, 50%

peer group) of EUR 1.12 (prev. EUR 1.14). While we expect WXF to repay EUR

1.8m of a bond this year, bonds worth EUR 8.7m will be refinanced through a

long-term, albeit more expensive, loan, which will likely increase WXF'

interest expenses going forward.

In Q1/25, Warimpex generated revenues of EUR 5.4m (+9.1% y-o-y), an EBITDA

of EUR 430k (+112.5%) and a net income (excl. one-offs) of EUR -1.3m (EUR

-2.6m). Thereof, Investment properties contributed EUR 3.5m (+17.1% y-o-y,

EBITDA margin of 44.6% vs. 43% in Q1/24), the Hotels segment EUR 1.2m

(-20.3%, 3.3% vs. 12.3%) and Development & Services EUR 740k (+48.2%,

-155.3% vs. -249.2%). Flat direct expenses led to a higher gross margin

y-o-y (47% vs. 42.5% in Q1/24). Net income was positively affected by a

higher net financial result and a tax refund of EUR 210k. As of 31/03/2025,

net gearing equalled 192.5% (31/12/2024: 187%) and equity ratio 31.1%

(31.8%). Poland now accounts for >60% of WXF's total revenues and 73% of it

Gross Asset Value.

Based on our discussions with WXF's management, we expect the trend

observed in Q1/25 to continue and have therefore reduced our 2025E revenue

and EBITDA estimates by 27.1%-75.1%. While the weak economic environment i

weighing on the German hotel business, Polish office rentals are expected to

benefit from the country's projected GDP growth of 3.7% this year.

You can download the research here: http://www.more-ir.de/d/32818.pdf

For additional information visit our website: https://eastvalueresearch.com/

Contact for questions:

Adrian Kowollik

Tel. : +49 30 20609082

E-Mail: ak@eastvalueresearch.com

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2152076 06.06.2025 CET/CEST

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