Fastator: Företagsparken better but miss on group - ABG

Sales above in all three consolidated holdings
Loss in Point, profit in Företagsparken
EPRA NRV per share 2% below our forecast

Total sales and net profit below
Fastator’s total sales came in at SEK 174m (74m) compared to our forecast of SEK 193m. Eliminations and group wide sales of SEK -10m (we had +14m) seems to explain most of the miss. Other operating costs were somewhat higher than expected. For Point and Nordic PM, sales were in line, while both reported losses, which we had not expected in Point. Företagsparken’s sales was 12% above our expectation, while a significant beat on net profit is likely explained by property value uplifts. The reported earnings capacity (EC) remained roughly unchanged in both Företagsparken and Point. Företagsparken signed acquisitions of SEK 120m in Q1 (+SEK 4m NOI to the EC), but a budget review for the portfolio has led to raised cost assumptions (-SEK 4m NOI to the EC). Management stresses that it is not higher input prices that have caused the revisions, but rather reviews of acquired properties in 2021.

Negative EPS mainly attributed to declined fin. investments Unrealised and realised value changes amounted to SEK 88m (48m) or +1.5%, we expected 0.9%. Fastator’s EPRA NRV per share increased by 4% q-o-q and 39% y-o-y (adj. for dividends) to SEK 28.0, 2% lower than ABGSCe. The equity ratio declined to 26% (34% in Q4’21) while it increased to 31% (28%) when including minorities. The loss from associated companies and joint ventures (ACs and JVs) is almost entirely attributable to the declining share price in Q1 (-14%) of the listed holding Studentbostäder i Norden. Issued debt financing and unrealised value changes on current financial investments have caused larger net financials than we had forecasted.

Trading 40% below ‘22e P/EPRA NRV on post-Q4 numbers Like the overall real estate sector, the share has performed weakly in 2022, and is down ~20% YTD. On post Q4-estimates, the share is trading at 0.59x P/ ... Läs mer på ABG Sundal Collier

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/fastator/Equity-research/2022/5/fastator---foretagsparken-better-but-miss-on-group/