Cibus: Solid Q4 while IFPM burdened by one-offs - Nordea

Cibus posted Q4 rental income of EUR 17.6m and net rental income of EUR 16.7m, in line with our estimates and Infront consensus. Income from property management (IFPM) was EUR 9.3m, 9% below consensus of EUR 10.3m and 6% below our EUR 9.9m estimate. However, there were EUR 1.0m of non-recurring negative items; the administration costs included EUR 0.5m of costs related to the planned change of listing to the Nasdaq main list, and costs for conducting an inventory of fittings and equipment in the Swedish portfolio. Also, net financial items included a EUR 0.5m negative change in exchange rates. Adjusting for these, IFPM would have been in line with consensus. Fair value changes were EUR 1.3m for Q4 and EUR 6.5m for the full year (0.5% of portfolio). The dividend proposal is EUR 0.94, up from EUR 0.89 a year ago and higher than consensus of EUR 0.93 but lower than our EUR 0.95 estimate. The dividend yield is 5.8%. The earnings capacity-based IFPM per share is up at EUR 1.15 from EUR 1.10 after Q3 following the acquisitions conducted in Q4. We had expected EUR 1.17 and the difference is explained by somewhat higher administration and financial costs than we had forecasted. The company sees many potential acquisition targets in Finland and Sweden, and also assesses other Nordic markets. The company’s efforts to move to the share to the Nasdaq main list are continuing and the list change is expected to materialise during H1 2021. We do not expect a significant share price reaction on the Q4 result release.