Fastpartner - Negative value changes of ~5% - ABG

Recurring PTP growth of -27% y-o-y, 14% below ABGSCe
In Q4’22, Fastpartner (FPAR) reported rental income of SEK 502m (469m) vs ABGSCe at SEK 521m. NOI increased 6% y-o-y to SEK 340m, -4% vs ABGSCe. Recurring PTP of SEK 180m (247m) was -14% vs ABGSCe at SEK 209m. The occupancy rate was 92.5% (92.4% in Q3’22). DPS is proposed to SEK 0.50 (2.20), vs ABGSCe at SEK 2.20 and DPS to D-shares is also cut, to SEK 2.50 (5.00). Moody's has previously put FPAR on a negative outlook, and the dividend cuts are manoeuvres to keep its Baa3 rating (Investment Grade). FPAR is working with relatively short interest maturity and is affected more than the sector average by the rapid increase in interest rates. In Q4'22, the average interest rate was 3.7% (2.9% in Q3’22 and 1.6% in Q4’21). Moreover, FPAR has adjusted its view on project development, taking a more cautious stance on new developments and instead focus on tenant adaptations.

EPRA NRVPS -7% q-o-q to SEK 107
Property value changes amounted to SEK -1,760m or -4.7% (ABGSCe -2.1%) — key peers in Stockholm (Atrium Ljungberg and Fabege) reported property value changes of -2.4% and -4.1%, respectively. The valuation yield increased by ~50bps q-o-q to 4.8% (and up ~40bps y-o-y). Reported EPRA NRV per share amounted to SEK 107 vs Q3'22 at SEK 115. Net LTV was 45.8% (42.7% in Q3’22). Investments in projects and tenant adjustments in Q4'22 amounted to SEK 201m (249m) and 747m TTM (777m), compared to FPAR’s ambition of SEK 600-800m per year.

Trading at P/CEPS ~21x vs five-year average of ~23x
The share is trading at ~21x 2023e CEPS and at a ~19% discount to reported EPRA NRV, compared to its 5-year average of 23x and a 3% premium.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/fastpartner/Equity-research/2023/2/fastpartner---negative-value-changes-of-~5/