Cibus: Stable Q1 in line with expectations adjusting for FX gain - Nordea

Cibus posted Q1 net operating income of EUR 18.2m, up 40% y/y on the back of acquisitions and 3% ahead of our estimate and 2% better than Infront consensus. Income from property management (IFPM) was EUR 11.6m, up 69% y/y and 5% better than our estimate and 6% ahead of consensus. EPS of EUR 0.28 was in line with our estimates and 7% better than consensus. Fair value changes were limited at EUR +0.2m. It is worth noting that IFPM included EUR 0.5m in FX gains, which implies the IFPM was in line with expectations adjusting for that. ERPA EPS was EUR 12.2 (SEK 123) and net LTV was 61.6%. Earnings capacity-based IFPM per share remained unchanged from Q4 at EUR 1.15 as no acquisitions were implemented during Q1. The company sees a number of acquisition targets, and has a target of acquiring assets for EUR 50-100m annually. Cibus maintains it target of moving to the Stockholm main list during H1 2021. Cibus is currentl y trading at a 46% premium to EPRA NAV, which we find justified given the stable operations and strong dividend focus. The dividend yield for 2021E-23E is 5.6-6.2% and Cibus distributes a monthly dividend. We expect a neutral share price reaction to the Q1 report which was largely in line with expectations adjusting for the positive FX gain.