On June 22, Ktesios SOCIMI formalized a new capital increase of €5M to continue with its strategic plan to invest in non-prime areas offering affordable rents, a unique and innovative business model that combines: high profitability – low risk – social impact, turning it into a decorrelated vehicle that generates value for its shareholders.
The latest Ktesios data shows a strong upside potential. The estimated value of its assets as of June of more than €30M exceeds their purchase price by 130%, with a market capitalization of €16.8M, the NAV/share ratio of €25 reflects a potential revaluation of the share price of more than 80%, which makes Ktesios one of the most attractive listed Socimis to invest in the European market.
With this latest capital increase, its shareholder base has increased by 146%, currently comprising 69 shareholders, and its equity capital has grown by 51%.
Investing in Ktesios SOCIMI as an alternative asset, generates higher and more stable returns than other real estate investments, since its niche, the residential market with social impact (“tier 3”), is proving its resilience against variables such as inflation, interest rate hikes or economic cycles, in addition to positioning itself as the only institutional investor in Spain focused on this type of asset.
Ktesios, with a long-term dividend yield target of 6.5%, contemplates at the end of the 2022 fiscal year in its strategic plan, a distribution of its first dividend of €0.20 per share and double its income with the objective of reaching €25M in equity and 1,586 assets, which represents an estimated generation of income of €1.6M.
To execute its strategic plan, the company has reinforced its Board of Directors with the appointment of two new independent directors; Luis Martin Guirado and Ignacio Fernandez-Galvan. Henry Gallego, CEO of Ktesios SOCIMI, affirms that “the incorporation of Luis with his great career in the real estate sector and of Ignacio (representing the minority shareholders) with his knowledge of the capital markets, give us a unique and exclusive value, promoting and strengthening our growth strategy…”, thus improving the transparency, independence and reputation of the SOCIMI.
Luis Martín Guirado has a solid track record of more than 30 years in which he has accumulated extensive knowledge in a wide variety of sectors such as real estate, investment, finance and banking, among others. He has been doing it both nationally and internationally throughout Europe, Canada, USA and LATAM. He highlights his 7-year period, as president of BNP Paribas Real Estate, his executive work at Credit Suisse, general director at Roan Real Estate Advice, vice president of Citibank and COO at Genesis (MetLife – Banco Santander). In 2014 and 2015 he held the position of Director of Transactions and Market Intelligence at Sareb. Currently, he is a member of the Council of Residential Specialists and holds the position of Corporate Director of Business Development at Gesvalt.
Ignacio Fernández-Galván, who has combined his profession with investments in Private Equity, Venture Capital and capital markets, has an extensive experience in real estate investments of all kinds, having focused mainly on residential, both in Latin America and throughout the European territory. In addition to this, he has extensive knowledge of Ktesios SOCIMI as he has been a shareholder since its inception.
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