Trianon: Operationally stable – hurt by energy costs - ABG

Net operating income -7% vs ABGSCe IFPM in the earnings capacity up by 6% Occupancy rate up 0.6pp q-o-q Income from property management -9% vs. ABGSCe Rental income came in at SEK 171m (153m), compared to our forecast of SEK 173m. Net operating income was SEK 107m (101m), -7% vs. ABGSCe. Higher energy prices impacted the NOI margin, which affects residential-focused property companies to a higher degree vs commercial names, as rent per sqm in general is lower and commercial companies can pass on increased cost to tenants. Income from property management (IFPM) amounted to SEK 66m (66m) relative to our estimate of SEK 73m. IFPM per share in the earnings capacity came up 6% from the previous quarter. Net leasing summed up to SEK 1.4m (1.8m) in Q2 and SEK 5.2m (9.6m) TTM, and the occupancy rate increased to 95.7% (95.1% in Q1’22 and 95.3% in Q2’21). Trianon renovated 18 (28) apartments in Q2 and 61 (68) in H1’22, while it targets 200 apartments for the full year.