Turkish infrastructure company could provide solid returns for those investors willing to be patient.
Akfen Holding's property and energy assets are well positioned, but the question is whether the company can sell them at reasonable prices, said Ekspres Invest, a research house in Istanbul.
Akfen Holding was founded as a contractor, but after diversifying into maritime services and aviation businesses, the group was restructured as a holding company.
It has already made a partial exit from its subsidiary, Akfen REIT, reducing its stake to 52 per cent through an initial public offering. The 123.4 million Turkish liras offering, which took place on May 6, was three times oversubscribed.
Akfen REIT has an exclusive 25-year agreement with Accor, an international hotel manager, for its Ibis and Novotel brands in Turkey and Russia. Akfen is only a project developer for these hotels and leases them to Accor to receive a rental fee that is a portion of revenues or operating profits, whichever is higher.
"The REIT business is expected to benefit from a rise in demand for three and four-star hotels in the country," said Behlul Katas, an analyst at Ekspres Invest.
Mr Katas initiated coverage of Akfen Holding with an "outperform" rating and a target price of 15.05 Turkish liras a share, implying a potential for a 35 per cent rise. Shares of Akfen Holding have already rallied 21 per cent to 11.10 liras since hitting a low in March.
Akfen Holding has also invested in hydro-power plants, where the operational capacity could more than triple in the next three years, said Mr Katas.
"The company's projects have recently become more valuable due to rising environmental concerns," he said. "In the medium to long term, the management plans to dispose of these assets."
The company sold one of its projects last year for €10 million.
halsayegh@thenational.ae
Despacito's dominance in numbers
Released: 2017
Peak chart position: No.1 in more than 47 countries, including the United States, the United Kingdom, Australia and Lebanon
Views: 5.3 billion on YouTube
Sales: With 10 million downloads in the US, Despacito became the first Latin single to receive Diamond sales certification
Streams: 1.3 billion combined audio and video by the end of 2017, making it the biggest digital hit of the year.
Awards: 17, including Record of the Year at last year’s prestigious Latin Grammy Awards, as well as five Billboard Music Awards
MATCH INFO
Champions League quarter-final, first leg
Tottenham Hotspur v Manchester City, Tuesday, 11pm (UAE)
Matches can be watched on BeIN Sports
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Coffee: black death or elixir of life?
It is among the greatest health debates of our time; splashed across newspapers with contradicting headlines - is coffee good for you or not?
Depending on what you read, it is either a cancer-causing, sleep-depriving, stomach ulcer-inducing black death or the secret to long life, cutting the chance of stroke, diabetes and cancer.
The latest research - a study of 8,412 people across the UK who each underwent an MRI heart scan - is intended to put to bed (caffeine allowing) conflicting reports of the pros and cons of consumption.
The study, funded by the British Heart Foundation, contradicted previous findings that it stiffens arteries, putting pressure on the heart and increasing the likelihood of a heart attack or stroke, leading to warnings to cut down.
Numerous studies have recognised the benefits of coffee in cutting oral and esophageal cancer, the risk of a stroke and cirrhosis of the liver.
The benefits are often linked to biologically active compounds including caffeine, flavonoids, lignans, and other polyphenols, which benefit the body. These and othetr coffee compounds regulate genes involved in DNA repair, have anti-inflammatory properties and are associated with lower risk of insulin resistance, which is linked to type-2 diabetes.
But as doctors warn, too much of anything is inadvisable. The British Heart Foundation found the heaviest coffee drinkers in the study were most likely to be men who smoked and drank alcohol regularly.
Excessive amounts of coffee also unsettle the stomach causing or contributing to stomach ulcers. It also stains the teeth over time, hampers absorption of minerals and vitamins like zinc and iron.
It also raises blood pressure, which is largely problematic for people with existing conditions.
So the heaviest drinkers of the black stuff - some in the study had up to 25 cups per day - may want to rein it in.
Rory Reynolds
'Cheb%20Khaled'
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