Cibus: The growth journey continues, undisturbed - SEB
Strong earnings
Q2 profit from property management of EUR 7.8m was above our estimate of EUR 6.5m. Administrative costs were not as high as we had expected. Included was a non-recurring advisory fee of EUR 0.2m, while we expected EUR 0.5m. In the financial net there was a non-recurring item related to the refinancing which took place during the quarter of EUR 2.8m, where we expected EUR 3m. A large part of the earnings beat was explained by lower than expected non-recurring items and the impact on the long-term estimates is small, and therefore our estimates are largely unchanged following the report.
Continues the hunt for more targets
Cibus executed EUR 50m worth of acquisitions in Q2 2020 adding 18 properties in Finland and in the first day of Q3 2020 another five properties, also in Finland, worth EUR 14.5m were acquired. With a platform in both Sweden and Finland, Cibus is now open for add-on acquisitions in two markets and the growth story through new properties is very much intact.
We estimate a fair value of SEK 120-140
Our approach to Cibus’ fair value is EV/GAV range of 1.00-1.05x with the current portfolio. This reflects the steady business outlook and low group costs. The relatively high required yield for Cibus’ assets enables strong and growing dividend yield in 2020-22E.
https://research.sebgroup.com/pdf/Cibus200820.pdf
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