Diös: Interest rates filtering through - ABG

Q4 NOI -3% vs ABGSCe
Property value changes -1.1%, net LTV 51.9%
Proposed DPS of SEK 2.00 vs ABGSCe at SEK 3.70


First glance at the Q4 figures

Diös delivered a Q4 report with rental income of SEK 568m (+14% y-o-y and -2% vs ABGSCe). The NOI margin came in at 64.3% (-0.2 pp vs ABGSCe at 64.5%), leading to NOI of SEK 365m (-3% vs ABGSCe at SEK 375m). Net financial expenses was higher than expected at -SEK 115m (ABGSCe at -SEK 91m). Net letting amounted to SEK 18m in the quarter, bringing the full 2022 figure to SEK 77m. The 2022 like-for-like rental income growth was 6.7% (6.5% Jan-June) and the NOI 10.0% (9.6% Jan-June). Occupancy amounted to 91% (flat q-o-q). CEPS was positively impacted by non-recurring positive tax. All in all, a report with NOI slightly below our estimates, but higher admin costs (even adjusting for one-offs) and net financial expenses take down adj. IFPM -15% vs ABGSCe. Strong net letting and stable occupancy. Proposed DPS at SEK 2.0 (3.52 in 2021, ABGSCe at 3.70).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/dios/Equity-research/2023/2/dios---interest-rates-filtering-through/