| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 28.20 | 129 |
| Intrinsic value (DCF) | 6.70 | -46 |
| Graham-Dodd Method | 4.80 | -61 |
| Graham Formula | 8.40 | -32 |
Care Property Invest NV (CPI) is a Belgium-based real estate investment trust (REIT) specializing in the development and financing of senior living residences. Focused on providing furnished retirement flats averaging 54 square meters, CPI caters to the growing elderly population in Belgium and surrounding regions. The company operates in the Real Estate - General sector, leveraging demographic trends favoring demand for senior housing. With a market capitalization of approximately €495 million, CPI combines stable rental income with long-term capital appreciation potential. Its properties are strategically located to serve aging populations, ensuring consistent occupancy rates. CPI's business model emphasizes sustainability, regulatory compliance, and high-quality care infrastructure, making it a key player in Europe's senior living real estate market. The company is listed on the London Stock Exchange (LSE) under the ticker 0R6H.L, offering investors exposure to a niche but resilient real estate segment.
Care Property Invest NV presents a compelling investment case due to its focus on the stable and growing senior living real estate market. With a beta of 0.465, the stock exhibits lower volatility compared to broader markets, appealing to risk-averse investors. The company reported €70.8 million in revenue and €25.7 million in net income, with a diluted EPS of €0.7. A notable attraction is its dividend yield, supported by a €0.85 dividend per share. However, high total debt (€568.6 million) relative to cash reserves (€2.87 million) raises leverage concerns. CPI's niche specialization provides competitive insulation, but reliance on demographic trends and regional economic stability introduces sector-specific risks. Investors should weigh its defensive attributes against potential interest rate sensitivity and capital-intensive expansion needs.
Care Property Invest NV holds a competitive edge through its specialized focus on senior living properties, a segment with high barriers to entry due to regulatory and operational complexities. Unlike general residential or commercial REITs, CPI benefits from inelastic demand driven by aging populations, ensuring stable occupancy and rental income. Its properties are designed for functionality and accessibility, differentiating them from conventional retirement homes. However, CPI faces competition from larger diversified REITs and private senior housing operators. Its relatively small scale (€495M market cap) limits economies of scale compared to pan-European players. The company’s high debt load could constrain agility in acquisitions or renovations, though its low beta suggests resilience to market downturns. CPI’s local expertise in Belgium provides regional dominance but may hinder expansion into new markets without partnerships. The lack of disclosed operating cash flow and capex data obscures operational efficiency analysis, though its profitability metrics (net income/revenue ~36%) indicate strong margins for the sector.