RCS - Deutsche Beteiligung - Edison issues review on Deutsche Beteiligungs

Deutsche Beteiligungs AGAnnouncement

29/05/2020 11:45

RNS Number : 3914O
  
Deutsche Beteiligungs AG
  
29 May 2020
  
 

 
London, UK, 29 May 2020
Edison issues review on Deutsche Beteiligungs (DBAN)
Deutsche Beteiligungs (DBAG) has updated its portfolio values, which led to a considerable revaluation loss in Q220, and in turn a net loss for H120 at €76.7m (or €5.10/share). Unlike many of its listed private equity peers, DBAG has already reflected in its NAV both the reduced long-term earnings prospects of its companies and lower peer multiples. This contributed to DBAG's relative underperformance with one-year NAV total return (to end-March) at -16.2% vs LPX Europe NAV at +8.7%. DBAG's fund services posted a €3.5m profit in H120 covering 88% of other ongoing costs. The eighth PE fund was closed with €1.1bn in commitments, but is not expected to start investing and collecting fees in FY20.
 
DBAG's shares tend to trade at a premium to NAV (defined as total equity), which in our view comes from the market-implied value of its fund services. The recent market turmoil has sent DBAG's shares to a 21% premium to NAV (which looks low vs the three-year average of 30%). DBAG's last dividend payout implies a 5.2% yield, but amid current conditions DBAG has so far refrained from providing guidance for the next payout.

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