Fastpartner: Solid value gains, IFPM slightly below - ABG

Net operating income -3% vs. ABGSCe Occupancy rate intact at ~92% ~12x LTM P/IFPM vs 5y average of 18x Income from property management -3% vs. ABGSCe Q2 rental income came in at SEK 492m (460m), 2% below our forecast of SEK 502m. Net operating income was 358m (334m), 3% below our estimate of SEK 370m. A SEK 10m one-off in central admin was largely offset by a higher-than-expected financial income. Income from property management amounted to SEK 270m (248m), 3% below ABGSCe. The occupancy rate amounted to ~92% (~92% in Q1’22 and ~91% in Q2’21). The average interest rate was 2.1% (1.6% in Q1’22 and 1.7% in Q2’21). EPRA NRVPS +4% q-o-q (adj. for DPS) to SEK 107 Property value changes in Q2 came in at SEK 865m or +2.4% (ABGSCe +0.5%). The valuation yield decreased to 4.3% (-0.1pp q-o-q and 0.2pp y-o-y). Reported EPRA NRV per share amounted to SEK 114 (SEK 107 adj. for equity instruments) versus our forecasts of SEK 112 and 105, corresponding to +4% q-o-q for both metrics, adjusted for A-share dividends. Net LTV was 42.8 (42.8% in Q1’22). Investments in projects and tenant adjustments in Q2 amounted to SEK 174m (200m) and 823m last 12 months, compared to Fastpartner’s ambition of SEK 600-800m per year. The isolated Q2 numbers would imply estimate revisions of -4% on CEPS, while +2% on EPRA NRV. Trading ~-15% vs peers on P/IFPM The share is trading at ~12x LTM P/IFPM and a ~42% discount to last reported EPRA NRV. These metrics are clearly below FPAR’s 5y averages (18x and 7% premium) on P/IFPM and P/NRV. Moreover, they are ~-15% and ~0% vs. the average of peers ATLJ, FABG, HUFV and NYF. On pre-Q2 estimates we have a fair value range of SEK 80-110. Läs mer på ABG Sundal Collier