Fastator: No drama in Q2 - ABG

Estimate changes driven mainly by accounting changes... …as well as lower updated interest assumptions 5.5x EV/EBIT ‘22e and a hefty NAV discount Deconsolidation main explainer for deviations Fastator’s Q2 report showed EBIT of SEK 255m, well above ABGSCe (+47%) due to a higher-than-expected result from associated companies and joint ventures. This was near-exclusively driven by an accounting effect from deconsolidating Företagsparken, its largest holding corresponding to ~50% of NAV, which decreased its cash position but improved its equity ratio and net LTV. Fastator still owns >70% of Företagsparken but its deciding influence fell below 50% in Q2, causing the deconsolidation (effective from 28 June, hence only a minor impact on Q2’s P&L and CF statements). Structural growth in Företagsparken previously drove sales in our estimates, meaning the deconsolidation cuts our estimates for sales, (partly) EBIT and (partly) EPS in ’23-24e. The other major factor behind our lowered EBIT and EPS estimates are raised funding costs and lowered property value uplifts (further explained below).