Trading ~35% below logistics/industry peers
Well-timed refinancing and energy hedging
Two particularly well-timed events have set favourable preconditions for Stendörren in H2 2022 and potentially for ~3 years ahead. By the end of ‘21, management refinanced large parts of its outstanding debt, which extended the interest maturity (~3y Q2’22) and increased the STIBOR 3m <1.8% capped interest to 67% (~58%), which with its sek 800 swap hedges ~80% of outstanding debt for ~3 more years. since the debt refinancing was driven by inflation concerns, and energy prices were the main driver of this inflation, stendörren also decided in early ‘22 to hedge its energy consumption, resulting in 80% of its forecasted energy consumption in ’22-’23, and 50% of consumption in ’24, now being hedged at levels seen in ’20-’21.>
Pandemic tenant resistance should hold true now as well
With 100% indexation-linked rental contracts, the question remains whether tenants can absorb higher rents. As is characteristic of the light industrial segment, the tenant base is diversified (e.g. besides Coop, the largest tenants correlate to 1-2% of rental income, respectively), which is good but also limits investors’ visibility. That said, impressive resilience during the pandemic, when just <1% of rental income or a total of>
Included in EPRA index in September, down 17% since
The September inclusion in the EPRA index should logically serve as a catalyst, as it permits a large int’l capital base to invest in the share. Since the inclusion, however, the share is down 17%. Our updated FVR of SEK 185-220 (190-230) reflects next 12m est. changes.
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