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Solid operational performance, miss on net financials in Q3Fastpartner delivered Q3 results with rental income and net operating income in line with our expectations. The NOI margin declined by 0.7pp y-o-y to 72.5% primarily driven by higher property tax. Central administration costs were slightly lower than we estimated, while net financials were higher in the quarter, resulting in rec. PTP 4.9% below our forecast. The occupancy rate declined by 0.1pp q-o-q to 91.2%, and the forward-looking guidance for income from property management was revised down by 2.3% to SEK 860m on a rolling 12-month basis. We lower 2026e-2027e CEPS by 3-4% driven by higher assumed funding costs. Good momentum in new lettingsWhile the vacancy rate increased somewhat in the quarter, management was more optimistic on the outlook, stating that an oncoming cyclical improvement has already been somewhat reflected in demand for premises, referencing strong activity in new lettings. Based on announced lettings, the higher activity seems to have continued into Q4. Management commented that while larger tenants remain cautious in letting discussions, they are no longer looking to downsize, rather the opposite. Letting progression for the Nasdaq premises in Frihamnen was not mentioned specifically, but management remain confident they will find a good solution for the premises. We have the impression that the property will need adjustments for new tenants, a process that will take ~12-15 months, suggesting 5-6% upside to our rental income forecast for 2027e if fully let. 2026e P/CEPS of 14x, coverage average of 16xThe share is trading at 2026e P/CEPS of 14x, below the average in our coverage of 16x and the average for office peers in our coverage at 15x. On 2025e P/EPRA NRV, the share is trading at 0.58x compared to office peers at 0.65x. |