Home Invest Belgium slides after KBC cuts stock to 'hold'

Home Invest Belgium SA

05/06/2023 09:50

** Shares in real estate company Home Invest Belgium
 HINV.BR  fall 3.8% after KBC downgrades it to "hold" from
"accumulate" and cuts target price by 28% to 19 euros
    ** The broker says the company's portfolio could lose 3.5%
of its fair value in 2023
    ** KBC points to a fair value correction of -1.3% seen
during Q1, linked to the Dutch portfolio
    ** It says Home Invest's liquidity of 29.2 mln euros ($31.2
mln) is tight, taking into account its high historical payout
ratio and commitment to grow dividends in line with inflation
    ** KBC adds the company's debt level is high at 53.01% and
more capital is needed to realise its 73 mln euro pipeline for
the next two years
    ** However, it notes structural undersupply in the Brussels
real estate sector favours Home Invest's asset class, expecting
a 3.5% minimum yield expansion
    ** "The stock experiences downward pressure due to its high
debt level and tight liquidity but we remain positive on the
asset class and HOMI's portfolio" -KBC
    
($1 = 0.9351 euros)

 (Reporting by Pierre John Felcenloben)
 ((Pierrejohn.felcenloben@thomsonreuters.com))