European rating agency. Objective, transparent, independent.
European rating agency. Objective, transparent, independent.

Gateway Real Estate AG

Rating History

Rating Watch Outlook Decision Date Action Validity Date Maximum Validity
BB- Outlook STA 10.11.2020 12.11.2020 28.02.2021
BB- Watch NEW 29.04.2020 04.05.2020 16.01.2022
BB- Outlook STA 27.05.2019 29.05.2019 16.01.2022
BB- Watch UNW 04.07.2018 05.07.2018 18.01.2022
BB- Outlook STA 19.01.2018 23.01.2018 18.01.2019

News

  • 12.11.2020
    Creditreform Rating has confirmed the SME Issuer Rating of Gateway Real Estate AG with BB-. The outlook is stable. Decisive for the rating assessment is, besides an increased capital and operating basis, the recently positive business development and the capital increase carried out in 2019, which contributed to an improvement of the result of the financial key figure analysis. The proven ability to access the capital market and the needs-based financial support from the group of shareholders have a positive effect on the rating, as does the well-filled project pipeline with a GDV of around EUR 5 billion. However, in our opinion, the (potentially) negative effects of the COVID 19 pandemic are dampening the rating, especially considering the ongoing recession and the renewed restrictions on public life in Germany. Based on the reporting as of June 30, 2020 and the earnings forecast for fiscal year 2020 as a whole, we consider the actual impact to date to be limited. Nevertheless, the situation remains challenging in the long term. Especially for commercial properties, which are particularly affected by the negative effects of the COVID 19 pandemic and account for more than half of Gateway Real Estate AG's project pipeline. The high dividend payout and the significant decline in cash and cash equivalents, which led to an increase in net financial debt despite the repayment of financial liabilities, also had a dampening effect on the rating.

    The one-year outlook for the rating is stable for the time being. Based on a solid, growth-oriented development in fiscal year 2019 and a resulting improvement in key financial ratios, we see a certain buffer in the short term to compensate for the initially limited negative impact of the COVID 19 pandemic on the net assets, financial position and results of operations of Gateway Real Estate AG.
  • 04.05.2020
    Creditreform Rating has confirmed the SME Issuer Rating of Gateway Real Estate AG at BB- in its monitoring during the year and has added the addition Watch NEW (Watch negative). The outlook no longer applies.
    The decisive factors for the Watch NEW addition are the social and macroeconomic distortions resulting from the COVID 19 pandemic, which could have a significant impact on the Group's business operations, key financial figures and liquidity in the current financial year. According to the latest information, the company has not yet noted any project postponements or construction delays in its portfolio. The extent to which the effects of the pandemic will affect Gateway Real Estate AG will probably be evident in the course of the 2020 fiscal year with the publication of business figures during the year. At present, we consider the risk of a significant economic downturn in the industry, which also has an impact on the rating object, as elevated.
    The improved results of the financial ratio analysis based on the 2019 annual report of Gateway Real Estate AG, which was mainly characterized by the capital increase in 2019 and a satisfactory earnings and liquidity position as of December 31, 2019, as a result of property and project sales, have a stabilizing effect on the rating. We do not expect the existence of the rating object to be at risk in the short term. According to the 2019 annual report, the board of directors plans to propose a dividend payment of EUR 0.30 per share for the past fiscal year at the annual general meeting. This would reduce equity and liquidity, which we consider unfavorable under the current situation.
  • 29.05.2019
    Creditreform Rating confirmed the corporate rating of Gateway Real Estate AG with BB-. The supplement “Watch UNW” has been withdrawn. The outlook is stable.
    Following the acquisition of Development Partner AG in 2018, a strategic realignment of the business model and the successful IPO in April this year, the capital and business base have expanded significantly. We value the project portfolio, which concentrates on German metropolitan regions, as a solid foundation for the next years. The rating object's ability to raise both equity and debt capital for corporate transactions and corporate growth, have a positive effect as well.
    Although the change in strategy offers a greater business dynamic and better growth and profit opportunities during the current market conditions, it has to prove itself. It is the same regarding the merger of the two companies Gateway AG and Development Partner AG. The rating currently balances the larger business base with its opportunities on the one hand and the risks associated with the business as well as the discontinuity in strategy and business model, in conjunction with the cautious key financial figures for 2018, on the other, which leads to the rating remaining stable compared to the previous year.
  • 05.07.2018
    Creditreform Rating has added the supplement “watch” to the current corporate rating of BB- of Gateway Real Estate AG due to an ad-hoc disclosure of Gateway Real Estate from 3 July 2018. The company announced that it has reached a general agreement concerning the acquisition of the complete shares of Development Partner AG and further project enterprises. The acquisition would increase the current project development volume and the volume of real estate assets of Gateway Real Estate AG many times over. The proceedings of the transaction intentions and any resulting effects on Gateway Real Estate AG remain to be observed.
  • 23.01.2018
    Creditreform Rating has set the corporate rating of Gateway Real Estate AG to BB- with a stable outlook. Positive factors of the current rating are operationally attributable to the portfolio growth and the revenue growth, and in particular to the non-cash relevant valuation result in 2016. The company has a very short track record in terms of the current business model as a real estate portfolio owner. Despite the existing, high-potential portfolio of investment properties, uncertainties remain regarding the future quality and structure of the property portfolio, as well as the development of results and financial ratios. We expect that the company will again report an increase in sales and earnings in the Group for the past fiscal year 2017, whereby we also assume that the non-cash relevant valuation result will continue to make a significant contribution to its success.