BMCE capital recommends the purchase of Aradei Capital shares

Aradei Capital has a policy of distributing dividends generated and reference shareholders such as Label’Vie and the EBRD.

You want to invest in the stock market, Aradei Capital is a security to buy. According to the latest recommendations from BMCE Global Research (BKGR), 2022 would be a good year for the company, whose income “should improve through the effect of the rents generated by the OPCI CLEO Pierre”. A return to normal in the activity of its tenants induced by a total lifting of restrictions is also a good indicator for the property company. Another positive point is that the company should be able to improve its Ebitda margins, thanks to an increasing occupancy rate and its FFO distribution rate, enabling Aradei Capital to post an annual performance that is “more attractive than the market,” says BKGR. For BKGR, the company has several strengths.

First, a fairly diversified portfolio of quality assets with an average IRR rate of 8.59%. The company also has a good structure and financial health. Aradei Capital can also assert itself through a dividend distribution policy generated by reference shareholders such as Label’Vie and the EBRD. Without forgetting a significant GLA surface in constant improvement and a land reserve of 281,970 m2 of which nearly 70% on the Casa-Rabat axis. As for its weaknesses, the Bank of Africa subsidiary has two.

The first relates to the valuation risk of investment properties. The second concerns the strong dependence on land prices, particularly in large cities. In terms of opportunities, Aradei Capital has five according to BKGR. First, the modernization of consumption patterns of the inhabitants of the property allows it the development of modern businesses to the detriment of the informal. Another opportunity is the lack of private medical and school infrastructure in Morocco. BKGR also highlights the possibility of a rise in rates which could drive up rents. Also, the gradual recovery of the tourism sector should boost the commercial activity of short-term tenants. Finally, the favorable demographic development of the Kingdom would also be an asset. In addition, two threats exist according to BMCE Global Research for Aradei Capital. The first concerns the development of e-commerce, which may exert downward pressure on footfall in shops in the long term. The second relates to the risk of disruption in the supply of raw materials which could delay the delivery of projects under construction.


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