Cibus: Increased hedging secures short-term earnings - Nordea

Cibus' Q2 2023 income from property management (IFPM) was in line with our expectations but slightly below Infront consensus, even adjusted for the EUR -0.8m in one-offs. Earnings capacity-based IFPM per share declined by 18% q/q, to EUR 0.91. This was mainly caused by an increase in the number of shares following the EUR 70m share issue, but also from the cost of debt rising from 4.3% to 4.6%. The company has purchased bonds in the market and increased its hedging significantly. We make limited changes to our IFPM estimates. Our fair value range is unchanged, at SEK 110-140 per share, based on a mix of P/EPRA NAV and peer valuation. The share is trading at a ~30% discount to EPRA NRV, which corresponds to an implied yield of ~7% versus the reported 6.1%. Marketing material commissioned by Cibus.

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