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Cibus Nordic Real Estate AB (FRA:6N5) Q3 2024 Earnings Call Highlights: Strategic Growth Amidst ...

In This Article:

  • Directed Share Issue: Issued approximately 5.7 million new shares at a 20% premium to NAV.

  • Acquisitions: Acquired properties worth about SEK 500 million (EUR 43 million) in 2024.

  • Rental Income: Increased by 2% to EUR 30.4 million.

  • Net Operating Income: Increased by 3% to EUR 29.2 million, excluding nonrecurring income.

  • Profit from Property Management: EUR 14.2 million, excluding nonrecurring items and FX rate changes.

  • Profit for the Period: Negative EUR 5.5 million due to unrealized changes in property values and derivatives.

  • Interest Rate Hedging: Hedged EUR 84 million at fixed rates of 1.86% and 1.99%.

  • Dividend: Paid EUR 0.22 per share during the quarter.

  • Net Asset Value (NAV): EUR 749 million or EUR 11.9 per share.

  • Loan to Value (LTV): Secured debt LTV at 50.2%, net LTV at 54.6%.

  • Cash Position: EUR 134 million at the end of Q3.

  • 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

  • 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.

  • 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.

  • Cibus Nordic Real Estate AB (FRA:6N5) has increased its earnings capacity per share for the fifth consecutive quarter, indicating consistent financial growth.

  • The company has actively engaged in refinancing and hedging, securing EUR84 million in interest rate hedging at attractive rates, which supports stable cash flows.

  • 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

  • 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.

  • 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.

  • The Norwegian market presents limited acquisition opportunities due to less attractive yield spreads compared to other Nordic countries.

  • Cibus Nordic Real Estate AB (FRA:6N5) faces double interest costs until all old bonds are called, impacting financials negatively in the short term.

  • The company is exploring expansion into Continental Europe, which may divert focus and resources from existing Nordic markets.