Cibus: Interest rate hedges starting to show in earnings - Nordea

Cibus' Q3 2023 income from property management (IFPM) was 16% ahead of Infront consensus, adjusted for one-offs. The decline in earnings capacity-based IFPM per share came to an end; instead, there was a EUR 0.02 q/q improvement, to EUR 0.93. This was mainly caused by the decline in the cost of debt from 4.6% to 4.4%. We make limited changes to our IFPM estimates for 2024-25. We raise our fair value range slightly to SEK 120-150 (110-140) per share, based on a mix of P/EPRA NAV and peer valuation. The share is trading at a ~20% discount to EPRA NRV, which corresponds to an implied yield of 6.8% versus the reported 6.2%. The EUR 0.9 dividend should be sustainable given the extensive hedging. Marketing material commissioned by Cibus.

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