FCR Immobilien (FCR) focuses on the acquisition and development of shopping and specialty shopping centers, typically of magnitude of 1,500 m2 or more in B and C locations. While tenants are largely crisis-resistant food retailers are, FCR moves in a sweet spot of the real estate segment, which due to its characteristics such as size (EUR 0.5-5 million investment sum), location (with good growth prospects and high demand) and tenant structure (tenants with usually high negotiating power) showcasts a lower intensity of competition, which generally allows lucrative purchase prices and thus higher initial returns for the company.
In addition to know-how and a long-standing track record, FCR benefits in particular from a large pool of potential anchor tenants, which is very important for new leases, because it gives the company negotiating power, even against the big players in the industry such as ALDI, Lidl or EDEKA - a competitive advantage not to be underestimated, whereas often outside the industry "single landlords", often accept lower rental prices for lack of alternatives at the end of a Rental period. The network with brokers and sellers that has grown over the years and the access to capital market (both FK and EK) create the conditions for further profitable sales and earnings growth.
Regional focus and focus on different size segments, FCR also differentiates itself from other competitors such as German consumer REIT (DKR) or Defama. Moreover, due to higher lending values (LTVs), FCR has been able to benefit disproportionately from the current low interest rates and can therefore generate added value for its shareholders.
A refocusing on the core business (i.e. sale of the hotel activities and consequent development into a pure inventory holder), an "uplisting" in the regulated market, as well as the associated improvement of the corporate governance structures should lead to a re-rating of the share. Moreover, fresh capital should not only lay the foundation for further profitable growth, but at the same time increase the liquidity of the share to make it more attractive for new investor groups