FCR Immobilien - High-growth German property investor

FCR Immobilien (FCR) invests mainly in retail property, targeting total returns derived from recurring rental income and capital gains. The company seeks to acquire properties at attractive prices and actively manages the assets to improve income, by reducing voids and increasing rent levels and capital values with minimal or no capex. A key element of FCR’s strategy is to sell properties where asset management plans are mature, with capital recycled into new opportunities. Consequently, gains on disposal are a significant element of returns, with historical average gross IRR at project level of c 25%. High leverage is part of its strategy, with net debt to total assets at 79% at end-June 2019.