Cibus: Q2 underlying operations in line with expectations - Nordea

Cibus posted Q2 results largely in line with expectations. Reported Income from property management (IFPM) was 6% above Infront consensus and included EUR -1.6m net of one-off items, relating to insurance compensation, bond refinancing, FX and extra admin costs related to options programme. Net operating income adjusted for insurance compensations was bang in line. Fair value changes were EUR -8.3m with a slight increase in valuation yield (6.5%) with Finland and Denmark in particular impacting. Earnings capacity-based IFPM per share was slightly up q/q at EUR 0.97 from EUR 0.96 which is a key focus for the company. Net financial expenses in earnings capacity is EUR 51.0m versus EUR 51.3m in Q1. EPRA NRV was EUR 11.8 (SEK 136), down from EUR 11.9 in Q1. Cibus is currently trading at a 26% premium to EPRA NRV and an implied yield of 5.9%. Cibus has effectively capped interest rates until H1 2025 and the average interest rate was 4.5% versus 4.6% at the end of Q1. We expect a neutral share price reaction on the Q2 report. The sustainable 6% dividend yield should also offer support.