Stendörren: Solid combo of cash flow and projects - ABG

Ongoing projects proceeding well...
...while Coop termination weighs in the short term
~20% below NAV vs. peer group at ~20% above


Operational performance remains high

Although the Q3 report showed a sequential decline in both earnings capacity (NOI -0.3%) and vacancy rate (6% vs. 5% in Q2), operations continue to impress. The rental uplift in renegotiated volumes was ~40% in Q3 and ~24% for Jan-Sep; few, if any companies in the Swedish sector can deliver these figures. Moreover, in 2023 it has completed projects with a lettable area of ~35,000 sqm and an occupancy rate of ~85%. Looking ahead, projects with ongoing construction or with received building permits amount to ~53,000 sqm and an investment volume of ~SEK 1bn, with completions scheduled between Q4'23 and Q3'25.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/stendorren/Equity-research/2023/11/stendorren---solid-combo-of-cash-flow-and-projects/