Stendörren: Rec PTP beat and positive value changes - ABG

- Rec. PTP +9% vs. ABGSCe
- Value changes positive, first time since Q4'22
- Earnings capacity IFPM +4% on lower net interest

Beat on operating lines
Stendörren delivered a Q2 report with total sales of SEK 221m (0.0% vs ABGSCe), NOI of SEK 183m (3.4% vs ABGSCe) at a NOI margin of 82.8% (+1.8% vs. Q2'23). Net interest was lower than expected (SEK -72m vs. SEK -74.6m ABGSCe) and central admin was in line at SEK -22m, leading to rec. PTP of SEK 89m being 9.4% ahead of ABGSCe. Occupancy came down was flat sequentially at 93.0% and the WAULT was 4.1 years.

First quarter of positive value changes
Property value revisions in the quarter were positive for the first time since Q4'22, and amounted to SEK 103m (+0.8% of property value), compared to our estimate of SEK 32m (0.3% of property value). The uplift is explained by adjusted yield requirements, market rent assumptions and changed cash flows. The average property valuation yield remained the flat at 6.3%, and the net LTV (ABGSC definition) decreased -2.1pp q-o-q to 50.2%. The average interest rate decreased -20 bps sequentially to 3.9% while the interest maturity shortened -0.1 years to 2.9 years, and the capital maturity shortened remained at 2.7 years. EPRA NRV per share came in at SEK 186.0 (0.1% vs ABGSCe).

Conclusion
Earnings capacity rental income increased to SEK 883m, which is 0.1% q-o-q and -0.6% vs. ABGSC 2024e rental income while earnings capacity IFPM increased 3.7% q-o-q to SEK 335m, on lower net interest. Commenting on the report, CEO Erik Ranje highlights two smaller acquisitions during the quarter, with a positive view to more transactions ahead. We think consensus CEPS estimates will come up 1-2% after the report, and for the share to outperform the sector today.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/stendorren/Equity-research/2024/7/stendorren---rec-ptp-beat-and-positive-value-changes/