EU REAL ESTATE: Deutsche Vermoegens (DVIVER: BBB-/BBB-) New Issue FV
Quite an opaque name with only one outstanding bond (being tendered) and an investor relations website that requires a log-in. Thankfully they did a roadshow.
• IPT: Exp350m 5.25yr Green ms+300a
• FV: +260bps would give a good discount to TEGGR (+168); SATOYH (+187); HEIBOS (+187 interpolated) but you need to be comfortable with a single-ISIN issuer and a small bond.
• Group is controlled by 2 families. Invests mainly in Berlin Residential with Commercial (Offices, etc, making up 20% of assets). The Berlin Residential are modern Plattenbau – pre-fab concrete buildings. Not pretty but give an in-place yield of 4.13% and are mainly >1990s or modernized from 80s.
• Assets: GAV EU3bn is on the small side. KOJAMO c8bn; SATOYH c.5bn; TEGGR c.6.5bn
• LTV reports 42.3%
• Roadshow says that ICR is 3.1x but S&P from Aug 24 said only 1.6x and expected to be <2.0x. Debt/EBITDA S&P had at 18.3x.
• Total Debt: EU1.52bn with 2.75% average rate. 98% hedged. Adj EBITDA 98m reported. Would give total Debt/EBITDA 15.5x.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
BONDS: Gilts Unwind A Portion Of Last Week's Selloff, Outperforming Bunds
The 10-year Gilt/Bund spread has tightened 5bps to 213bps, with UK paper staging a light relief rally alongside USTs this morning. Market moving headline flow has been relatively limited, with participants assessing weekend rhetoric from US officials on consumer electronics tariffs alongside the highly volatile nature of last week’s moves.
- Gilt yields are 3.5-9.5bps lower across the curve, bull flattening. 2s30s has fallen 6bps to ~141bps, unwinding last week’s notable steepening.
- German yields are flat to 3bps lower, with the belly outperforming.
- Futures volumes are comfortably below recent averages. Bunds are -14 ticks at 130.84 (Initial resistance at the Apr 11 high of 131.42; Support at the 20-day EMA of 129.59). Gilts are +66 at 91.30 (Initial resistance at the 20-day EMA of 91.84; Support at Apr 11 low of 90.47).
- Strength in US equity futures has fed well into outperformance for cash European indices this morning. The reprieve for electronics imports from China into the US is the driver here. That helps 10-year EGB spreads to Bunds tighten.
- BTPs outperform, also aided by S&P’s upgrade of Italy's sovereign rating to BBB+ (Outlook Stable) after hours on Friday.
- This week’s regional calendar is headlined by UK labour market (Tues) and inflation (Weds) data and the ECB decision (Thurs).
EQUITIES: Estoxx put Spread
SX7E (17th Apr) 170/165ps, bought for 1.35 in 6k vs ~1.1k at 167.00.
EURIBOR: EURIBOR FIX - 14/04/25
EURIBOR FIX - EMMI/Bloomberg
- EUR001W 2.3560 -0.0330
- EUR001M 2.2520 -0.0520
- EUR003M 2.2520 -0.0270
- EUR006M 2.2120 -0.0320
- EUR012M 2.1260 -0.0410
