AlphaValue Corporate Services Fundamental Analysis FR
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AlphaValue Corporate Services
This research has been commissioned and paid for by the company and is deemed to constitute an acceptable minor non-monetary benefit as defined in MiFID II

Foncière Paris Nord

CR
Bloomberg   FPN FP
One asset property  /  France  Web Site   |   Investors Relation
Soon ready for a new departure
Pros
  • 45,000 sqm of real estate of which 28,000 sqm constructible, located in a northern Paris regeneration zone. The marked improvement in accessibility (Line 16, Grand Paris) will increase the asset’s liquidity between now and 2025-30.
  • The 2016 Local Master Plan grants residential construction rights which will be confirmed in 2021. The proximity of Garonor-Roissy authorises the rehabilitation of the site in last mile logistics/offices.
  • Our price target of €0.056 already factors in a possible €5m gain in 2021 (€0.02 per share) linked to balance sheet optimisation. A more ambitious optimisation could add €0.02.
Cons
  • The balance sheet is anything but balanced. The company will post non-funded negative free cash flows in the short term. Failing a rapid sale of the asset, FPN will soon require a massive recapitalisation.
  • The balance sheet liability is not funded. In the event of an optimisation, this will represent a very substantial NAV gain. Without a rapid optimisation, a filing for bankruptcy is probable before too long.
  • Governance: the Ott Group controls the diluted share capital (2023). Balance sheet management may nonetheless lead to more massive dilution with a further major change to the current governance.
Target
Upside 77.7%
Price (€) 0.03
Market Cap (€M) 3.52
Perf. 1W: -1.94%
Perf. 1M: -5.59%
Perf. 3M: -15.6%
Perf Ytd: 32.2%
10 day relative perf. to stoxx600: -4.36%
20 day relative perf. to stoxx600: -7.89%