Fastpartner - High value revisions and positive project trend
Recurring PTP up 2% y-o-y, SEK 247m, -7% v. ABGSCe Large value uplifts following sector-wide yield shift TTM P/CE of 24. 5x vs. sector at 23.
4x Growing project portfolio a clear positive NOI was flat y-o-y and came in 2% below ABGSCe. We were too high on net financials, which mainly explains the miss of 7% on recurring PTP vs. ABGSCe.
However, recurring PTP was in line with consensus. Ongoing project investments continued upwards to SEK 1,194m (SEK 1,054 in Q1’21 and SEK 970 in Q2’20). Excluding Hilton 2 (Q2’23, SEK 252m), all major projects are scheduled to be completed between Q3’21 and Q4’22.
They are located in four (Stockholm, Uppsala, Norrköping and Gävle) out of Fastpartner’s six main cities (nothing in Gothenburg or Malmö). EPRA NRV up 24% y-o-y to SEK 90. 9 Value uplifts of SEK 1,119m in Q2, corresponding to 3.
6% of total property value, were far above ABGSCe of 0. 7%, but also historical value uplifts are lumpy and therefore difficult to forecast. Q2’s uplifts came mainly from large upwards revisions from external valuers (done twice a year) following broad uplifts from competitors in Q1, where Fastpartner’s internal valuation only lifted values by 0.
6%. These uplifts moved EPRA NRV up by 24% y-o-y to SEK 90. 9 (vs.
ABGSCe SEK 87). Net LTV came down by ~80bp since Q1 and 340bp since Q2’20 to 45. 3%.
Net debt/R12m EBIT is now 11. 6x, compared to 12. 2x in Q1 and 11.
1x in Q2’20. Stock is trading just above the sector average Fastpartner has historically traded at multiples well above the sector average but it is now trading closer to it at 24. 5x TTM P/CE (vs.
sector at 23. 4x). On last reported P/EPRA NAV (adj.
), the share is trading above the sector, at ~1. 2x compared to 1. 0x.
This is 6% above the sector average, compared to the 11% deviation on a three-year average.
