| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | 10.92 | 40043 |
Foncière Paris Nord (FPN.PA) is a French real estate investment trust (REIT) specializing in commercial office properties, primarily located in the Paris region. The company owns and manages business centers covering approximately 52,000 square meters, catering to corporate tenants in one of Europe's most dynamic commercial real estate markets. Incorporated in 1919 and headquartered in Paris, Foncière Paris Nord operates under the SIIC (French REIT) regime, which provides tax advantages while requiring high dividend payouts. The company focuses on stable income generation through long-term leases, though its portfolio is relatively small compared to larger French REITs. With its strategic Parisian locations, Foncière Paris Nord benefits from strong demand for office space in a market characterized by limited supply and high occupancy rates. However, its concentrated portfolio and smaller scale present both opportunities and risks in a competitive sector dominated by larger players.
Foncière Paris Nord presents a niche investment opportunity in the Parisian office real estate market, offering exposure to a prime location with historically strong demand. The company's small scale and concentrated portfolio heighten risk, as evidenced by its negative net income and operating cash flow in FY2019. While the €2 dividend per share indicates income potential, investors should weigh this against the company's high debt levels (€14.37 million) and limited liquidity (€24,000 cash). The 0.69 beta suggests lower volatility than the broader market, but the REIT's performance remains tightly coupled with Paris' commercial real estate cycle. Given its challenges in profitability and cash generation, FPN.PA may appeal primarily to investors seeking targeted Paris exposure with higher risk tolerance.
Foncière Paris Nord operates in a highly competitive French REIT sector dominated by larger, more diversified players. The company's primary competitive advantage lies in its specialized focus on Parisian office properties - a market with high barriers to entry due to limited availability of prime locations. However, its small portfolio size (52,000 sqm) severely limits economies of scale compared to major French office REITs that manage millions of square meters. The company's financial metrics lag behind industry peers, with negative net income and operating cash flow in 2019 suggesting weaker asset management capabilities or less favorable lease terms. Its high dividend payout (€2 per share) could strain financial flexibility given the cash flow situation. Geographic concentration in Paris provides location premium but also creates vulnerability to local market downturns. The company's modest market presence makes it difficult to compete for large corporate tenants who often prefer dealing with institutional-scale landlords. While the SIIC tax structure provides parity with larger French REITs, FPN's smaller size prevents it from achieving the same financing terms or development capabilities as market leaders.