Diös: Northern Sweden less volatile than Stockholm - Introduce
Improved Q2 rent collection after the Q1 reportWe hosted a video conference with the company on Friday 15 May. In its Q1 report, Diös reported rent collection of 91% for Q2. However, management guides that Q2 rent collection has improved to a normal level (97% last year). Most of the collection problems relate to retail/hotel/restaurants. 20% of the contracted rental income stems from retail but ~11% of that includes grocery, pharmacies, and liquor (“Systembolaget”), which have benefitted from the COVID-19 crisis. In addition, 6% of the rental income derives from hotels & restaurants. Management states that there is good activity on the letting market, especially in the office segment with government/municipal tenants. Diös says that rent levels are less volatile in Northern Sweden compared with Stockholm.