||EPS - Basic
||Market Cap (m)
|Summit Germany Daily Update: Summit Germany is listed in the Real Estate sector of the London Stock Exchange with ticker SMTG. The last closing price for Summit Germany was 1.01 €.|
Summit Germany has a 4 week average price of 1.00 € and a 12 week average price of 0.99 €.
The 1 year high share price is 1.03 € while the 1 year low share price is currently 0.87 €.
There are currently 465,399,862 shares in issue and the average daily traded volume is 9,498 shares. The market capitalisation of Summit Germany is £467,726,861.31.
Summit Germany (BUY, TP €0.95)
Financing on more favourable terms
Summit Germany has completed the financing of an existing 9-asset portfolio with a 7-year, €33m debt facility. An interest rate of 2.1% had previously been announced to the market on 19 January as part of a binding term sheet, but the final rate agreed is 14bps lower, at 1.96%. The €50m shareholder loan which attracted an interest rate of 9.5% has now been fully repaid, saving interest costs of €4.75m per annum.
Summit Germany has c.€90m of free cash available for acquisitions, with detail on deal negotiations expected in the coming weeks.
Today's announcement is the second time since Dec-14 that SMTG has secured financing on more favourable terms that previously agreed in principle. Last time, the company originally announced a rate of 3.4% on its main facility, with a final rate of 3.14% agreed, 26bps lower.
Although today's interest saving only represents c.€50k per annum, it reinforces the strength of the company's banking relationships and negotiation powers, with the interest saving flowing straight through to net income. Our recently published note last month highlights the fact that we believe the ability for SMTG to continue to grow its distribution level is currently underappreciated by the market. We forecast up to 25% dividend growth next year, from 4.8 cents at present to 6.0 cents, representing a FY16 dividend yield of 6.9%.
Recent share price performance has been very strong, delivering a shareholder total return of 28% YTD. However, SMTG still trades on a 12.5% discount to our FY16E NAV of €1.00, and our price target offers a 14% total shareholder return. This combined with the expectation of forthcoming announcements of significantly income acquisitions over the coming few weeks, we reiterate BUY.|
|trustman: Change of FD, normally a negative......but share price rising, and a little turnover.
New FD a good name, or just the fact from outside the company?|
Summit Germany share price data is direct from the London Stock Exchange