Diös: A story of two tales - ABG

- Positive net letting and higher rental levels
- Floating debt with higher interest rates takes down CEPS
- Trading ~20% below sector average

Operationally solid....
Diös delivered a Q2 report with NOI slightly below our estimates, but up 14% y-o-y. Net letting was yet again positive (SEK 16m), and has now been positive in 19 out of the past 22 quarters. Management notes that signed office leases often are at rental levels of ~SEK 3,000 per sqm (current average rent in the portfolio is <SEK 2,000) and even retail tenants up in the north are performing well. Property yields are approaching 6% and Diös can run projects with a yield-on-cost of ~8%. These are all attributes and variables which should bode well for solid cash generation and earnings growth ahead.

Länk till analysen i sin helhet: https://cr.abgsc.com/contentassets/b2c2b541b6154b79aa8169b6606491a5/pdf/a-story-of-two-tales.pdf