Cofinimmo tops BEL20 after confirmed 2022 targets, solid Q3

Cofinimmo SA

31/10/2022 08:48

(Updates shares, adds analyst comments)
    ** Shares in Cofinimmo  COFB.BR  rise around 3% after the
Belgian property investor on Friday confirmed its 2022 EPS and
dividend outlook and posted Q3 results
    ** "Solid Q3 results in turbulent times," KBC Securities
("buy") says
    ** Berenberg ("buy") notes the company is on track to reach
its full-year targets 
    ** Berenberg adds Cofinimmo's health portfolio regional
expansion plan looks viable, and expects it to further
strengthen its income profile as healthcare real estate trends
remain resilient with strong continued demand for nursing
facilities expected across western Europe
    ** J.P.Morgan ("neutral") says the results are in line but
it sees headwinds for values going forward which may leave the
balance sheet exposed
    ** ING ("buy") says results were good overall but flags the
company's high debt level, pointing to a 46.2% debt ratio at
end-September
    ** "With a higher debt ratio exceeding the usually 45%
threshold, we could expect an equity issuance in near future,"
ING adds
    ** Confinimmo sees its debt-to-asset ratio at 47% at
end-December
    ** Barclays ("overweight") says this is lower than
previously expected but still not a comfortable position to be
in 
    ** "So far, rising interest rates have not yet resulted in
yield expansion but compression," KBC Securities says, adding 
the 47% ratio is a safe level when moderate yield expansion
starts
    ** The stock, which is down around 39% YTD, sits at the top
of Belgium's BEL 20 index  .BFX 
 (Reporting by Elena Vardon)
 ((elena.vardon@tr.com))