Fastator: A dive into the holdings - ABG
EBIT incl. value changes of SEK 28m in Q2 vs. SEK 32m in Q1
Fastator’s EBIT (incl. value changes) was SEK 27.7m in Q2. Of this, among other items, SEK 19m stemmed from Point, SEK -1.3m from Nordic PM and SEK 8.5m from other real estate holdings. Associated companies and joint ventures delivered EBIT of SEK 6.1m, which consisted of EBIT contributions from Företagsparken (SEK 6.1m), the new Abamco JV with Broadgate (SEK 5.3m), SBK (SEK -0.5m), Genova Fastator (SEK 1.5m) and Studentbostäder (SEK -6.4m). Our large estimate changes on EBIT and EPS are explained by us adjusting for the incorrect modelling of Offentliga Hus in our most recent report.
Value revisions of SEK 19m, or 1.2% of property value in Q2
Long-term NAVPS was flat q-o-q and up 2% y-o-y to SEK 21.8, 3% below ABGSCe. Value revisions amounted to SEK 18.8m, up 1.2% from the property value at the end of Q1. We expect 1.5% for 2022, in line with inflation expectations, and 2.5% for 2023, reflecting the potential we perceive in Point Properties. Fastator had a cash position of SEK 729m in Q2’21, which comes down to SEK 451m in Q3e, due to announced acquisitions. This means there is plenty of room for investment that could change the earnings capacity quite drastically if Fastator utilises it.
P/NAV of 0.88x – in line with 1y avg. and above 2y avg.
Fastator is trading at P/NAV last reported of 0.88x, compared to its 1-year average of 0.90x and its 2-year avg. of 0.83x. Fastator’s valuation implies a ~40% discount vs. our real estate coverage. However, as it is Sweden’s only listed real estate investment company, we argue that it is hard to fully compare Fastator with traditional real estate companies. Its historical NAV growth is impressive, and Fastator has shown it can nurture and grow its holdings, but several of its current initiatives are in the early phases of their growth journeys. Moreover, since the company is heavily transaction-oriented, what is true today might change tomorrow. Bit by bit, however, we aim to offer a more complete picture of the company and its share potential.
Länk till analysen i sin helhet: https://www.introduce.se/foretag/fastator/Equity-research/2021/9/fastator---a-dive-into-the-holdings/