Fastpartner - Fended off COVID-19 and returned to ATHs
2020 IFPM +12% despite 50% office exposure Adj. EPRA NAVPS of SEK 83. 8, CEPS SEK 4. 25 Ongoing investments in projects of SEK 1,122m (+30%) Q4’20 NOI (SEK 317m) in line with record Q4’19 (SEK 316m) Fastpartner ended the year with 9.
6% NOI growth (to SEK 1,285m, FY’19 at 1,173m) and 11. 7% recurring PTP growth (to SEK 952m from SEK 852m) despite 2019 having been a record year for the company. The NOI growth was due to rental increases from acquired properties (~57%), renovations (~35%) and renegotiations (~8%).
For Q4, rental income was SEK 462m (454m) vs. ABGSCe 460m and property-related costs of SEK -145m (-138m) vs. ABGSCe at -129m.
Quarterly recurring PTP of SEK 249m was in line with ABGSCe at SEK 246m, but 9% above Q4’19 due to SEK 18m in profit from associated companies. Ongoing investments in projects amounted to SEK 1,122m, +30% vs. SEK 866m in Q4’19.
DPS of SEK 2. 0 (1. 9) was proposed vs.
ABGSCe of SEK 2. 1. EPRA NAVPS adj.
+9% in Q4, +15% in 2020 Fastpartner’s value revisions amounted to 3. 43% of the portfolio value in Q4 (ABGSCe at -0. 25%).
The large beat from unrealized properties (SEK 1,024m) underscores the attractiveness of well-connected locations in Stockholm. Entrepreneur-led and agile, Fastpartner has quickly transformed its portfolio to include ~50% offices (from 35% two yrs ago), as it sees the office segment as having the best prospects for rental growth. Q4 reported EPRA NAVPS was SEK 91.
1 (82. 6) and adj. EPRA NAVPS (subtract.
for D- and pref. shares) was SEK 83. 8 (74.
5) vs. ABGSCe of SEK 76. 4.
For the last 5 and 10 years, Fastpartner has had CEPS CAGRs of 10% and 14%, respectively. We argue that the company will reach its growth target of 10% recurring PTP per common share per year, and we expect a CEPS CAGR of ~10% in ‘20e-22e. 19.
6x P/CEPS vs. sector average of 18. 5x With a change of analyst, we have thoroughly reviewed our estimates.
The share is down ~9% LYTD compared to the sector (Carnegie Real Estate Index) at ~-10%. Fastpartn.
