Diös - 2-5% below ABGe but higher occupancy rate - ABG

Net operating income -3% vs. ABGSCe Net leasing (TTM) was SEK 74m (17m in Q2) +2% vs. consensus on IFPM, -5% on EPRA NRV Income from property management -2% vs. ABGSCe Total income came in at SEK 543m (504m), compared to our forecast of SEK 558m and Infront consensus of SEK 550m. Net operating income was SEK 380m, -3% relative to our estimate of SEK 390m and 0% vs. consensus at SEK 380m. Income from property management amounted to SEK 313m (288m), -2% vs. our forecast of SEK 320m and +2% vs. cons. of SEK 307m. Net leasing in the quarter was SEK 17m (1m), SEK 74m TTM (18m). Q2 like-for-like rental growth amounted to 5.8% y-o-y. The occupancy rate amounted to 91% (90% in Q1’22). The average interest rate was 1.8% (1.2% in Q1’22) and the average interest maturity was 1.0 y (0.8 y in Q1’22). EPRA NRVPS 0.1% q-o-q (adj. for DPS) to SEK 102.2 Property value changes amounted to SEK 106m (262m) or +0.4%, we expected 0.5%. This is mainly attributed to higher market rents and improved net operating income. The valuation yield was down 6bps q-o-q and 18 bps y-o-y, to 5.41%, mainly explained by a different property portfolio and lower vacancies. EPRA NRV per share increased 0.1% q-o-q and 24% y-o-y (both adj. for dividends) to SEK 102 (85), versus our forecast of SEK 107 (consensus SEK 107. Net LTV was 50.4% compared to 49.3% in Q1’22. ~9x P/IFPM of and ~0.70x P/EPRA NRV The share is trading at ~9x LTM P/IFPM and a ~30% discount to reported EPRA NRV. These metrics are below DIOS’ 5y averages (10x and a 5% discount) although the current and expected activity in its cities is unprecedented. Moreover, it is a ~30% discount to the average of its peers CAST, EAST, NYF and WIHL. On pre-Q2 estimates we have a fair value range of SEK 70-100. Läs mer på ABG Sundal Collier