In This Article:
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Directed Share Issue: Issued approximately 5.7 million new shares at a 20% premium to NAV.
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Acquisitions: Acquired properties worth about SEK 500 million (EUR 43 million) in 2024.
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Rental Income: Increased by 2% to EUR 30.4 million.
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Net Operating Income: Increased by 3% to EUR 29.2 million, excluding nonrecurring income.
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Profit from Property Management: EUR 14.2 million, excluding nonrecurring items and FX rate changes.
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Profit for the Period: Negative EUR 5.5 million due to unrealized changes in property values and derivatives.
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Interest Rate Hedging: Hedged EUR 84 million at fixed rates of 1.86% and 1.99%.
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Dividend: Paid EUR 0.22 per share during the quarter.
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Net Asset Value (NAV): EUR 749 million or EUR 11.9 per share.
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Loan to Value (LTV): Secured debt LTV at 50.2%, net LTV at 54.6%.
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Cash Position: EUR 134 million at the end of Q3.
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Dividend Yield: 5.8% with a share price of EUR 176.10 per share at the end of the quarter.
Release Date: November 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cibus Nordic Real Estate AB (FRA:6N5) successfully carried out a directed share issue in September, raising 927 million SEK at a 20% premium to NAV, demonstrating strong investor support.
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The company has a strong acquisition pipeline, having made acquisitions worth approximately EUR43 million in 2024, with plans to continue using cash resources for further acquisitions.
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Cibus Nordic Real Estate AB (FRA:6N5) has increased its earnings capacity per share for the fifth consecutive quarter, indicating consistent financial growth.
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The company has actively engaged in refinancing and hedging, securing EUR84 million in interest rate hedging at attractive rates, which supports stable cash flows.
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Cibus Nordic Real Estate AB (FRA:6N5) maintains a diversified portfolio across four Nordic countries, with a focus on daily goods properties, which are non-cyclical and provide stable cash flows.
Negative Points
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The company reported a negative profit for the period of minus EUR5.5 million, primarily due to unrealized changes in property values and derivative movements.
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There is a notable drag on rental growth from occupancy, with higher vacancies in some properties, including non-food lease contracts that have become vacant.
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The Norwegian market presents limited acquisition opportunities due to less attractive yield spreads compared to other Nordic countries.
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Cibus Nordic Real Estate AB (FRA:6N5) faces double interest costs until all old bonds are called, impacting financials negatively in the short term.
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The company is exploring expansion into Continental Europe, which may divert focus and resources from existing Nordic markets.