Cibus: Q2 somewhat below expectations even when adjusting for negative one-offs - Nordea

Cibus posted Q2 net operating income of EUR 25.2m, up 36% y/y on the back of acquisitions but 2% below our estimate and 3% below Infront consensus.

Income from property management (IFPM) was EUR 13.6m, up 25% y/y but 18% below our estimate and 22% below consensus. However, IFPM included EUR 2.1m of negative exchange rate losses and EUR 0.4m costs from bridge financing for the Danish acquisition. Adjusting for these, IFPM was 2% below our estimate and 8% below consensus. Fair value changes were EUR 17m positive (~1% of portfolio).

Earnings capacity-based IFPM per share was unchanged q/q at EUR 1.34. EPRA NRV was EUR 15.0 (SEK 157). Cibus is currently trading at a 13% premium to EPRA NRV. We conclude that the report was somewhat on the weak side even adjusting for one-offs. The declined EPRA NRV premium makes the compounder case less attractive as Cibus, in order to reach its growth targets and investment grade rating, will need to issue new shares. We expect a slightly negative share price reaction on the Q2 report.

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