CA Immo (CAIV.VI): Excess Cash on Major Sale Leaving Room for Higher Payout

Deutsche Bank's company update on CA Immo notes that the company announced the signing of the Czech portfolio sale, with terms not yet disclosed and expected at closing. The portfolio's book value is EUR312m as of 1H26, about 9% of total standing assets. Including proceeds, a pro-forma cash position of up to EUR1.1bn is likely. Deducting EUR500m for planned bond repayment, EUR100m for further debt repayment, EUR100m annual capex and EUR200m minimum cash balance would leave up to EUR200m excess cash, or up to EUR2.1 per share, about a 10% yield on top of the regular dividend and the running buyback. Historically, main shareholder Starwood opted for special dividends for major excess cash. The deal leaves about 17% remaining CEE exposure in Poland and Hungary, closer to the German pure-play target. Conversely, it should contract a good portion of headline earnings given about EUR16m of rents, partly offset by lower financing costs from debt repayment. Rating: Hold; price target EUR23.00;