The Zurich-based real estate and general contracting company Allreal was founded in 1999 and has been listed on the Swiss stock exchange since 2000.
Son portefeuille real estate est valorisé à 3.6 mia pour une capitalisation boursière de 2.4 mia. Allreal est numéro 3 en Suisse derrière SPS et PSP.
Allreal is active only on the Swiss market and offers an interesting mix of residential buildings, commercial premises, parking spaces, warehouses, etc. Residential buildings have the advantage of being less subject to real estate cycles than commercial premises.
Lors de l’acquisition de nouveaux objets, les sociétés immobilières suisses sont fortement concurrencées par les caisses de pension et les assurances, qui sont friandes d’immobilier en cette période de faibles taux d’intérêt.
The equity of around 52% is very good for a real estate company. The return on equity (ROE) of 8.5% is also decent (in comparison: 6.4% at SPS, 10.4% at Intershop).
In addition, Allreal has managed to significantly reduce its vacancy rate in recent years (around 2.9% in 2017 compared to 5.1% in 2016 and 7.5% in 2015).
Le dividende est plutôt intéressant (rendement actuel 3.5%), mais nous n’avons pas vraiment à faire à un dividende croissant, puisqu’il n’a augmenté que de 10% entre 2010 et 2017. Le distribution ratio du dividende oscille généralement autour des 80%, ce qui laisse assez peu de marge pour une augmentation future substantielle.
The dividend does, however, have the advantage of being (for now) paid from capital reserves, making it tax-free. But given the decline in these reserves in recent years, there is no guarantee that this practice will last for more than a year or two.
Neither the price-earnings ratio (PER) nor the price-to-book ratio (PBR) are really appropriate for evaluating real estate values. The best measure is given by the NAV (net asset value).
At a price of 164.80, the premium compared to the NAV (which is around 132 fr. per share) is almost 25%. This premium is very high in historical comparison and limits the potential for appreciation. I was considering a purchase only at a price close to 150 fr.
There are currently much more attractive opportunities among Swiss real estate stocks...
Patient (Hannibal) reader, and the answer here, soon you will discover...
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Thanks dividinde for this analysis. A bit of Swiss real estate from time to time is good.
I share the same conclusions as you on this title: a little expensive and not really with a view to increasing dividends.
In short, we are VERY IMPATIENT to see your analyses of more attractive Swiss real estate companies!
Real estate in an asset portfolio always feels good. Especially in these times.
Yes, at this price it is too expensive and that is why, despite the quality of this company, I really cannot recommend the stock at the moment.
Patience, patience. (Baba au) Rome wasn't built in a day… 🙂