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Fastpartner - Rental markets remain challenging

13 februari 2025

<a id="bm-comp-1200e025-5a7f-40c4-9825-604aa270dee7" name="bm-comp-1200e025-5a7f-40c4-9825-604aa270dee7" class="BMCustomAnchor"></a><table><tr><td bm-component-id="1200e025-5a7f-40c4-9825-604aa270dee7" style="vertical-align: top; width:100.000000%;"><ul><li>Rec PTP -1% vs ABGSCe, driven by lower rental income</li><li>Values largely unchanged, despite slight yield contraction</li><li>Share to trade in-line with the sector today</li></ul></td></tr></table><a id="bm-comp-077d6993-41cf-4f36-a9cd-bcb1c9049e3e" name="bm-comp-077d6993-41cf-4f36-a9cd-bcb1c9049e3e" class="BMCustomAnchor"></a><table><tr><td bm-component-id="077d6993-41cf-4f36-a9cd-bcb1c9049e3e" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Rec PTP -1% vs ABGSCe</h3><p><font color="#000000">Fastpartner delivered a Q4 report with rental income of SEK 566m -2% vs ABGSCe of SEK 579m and 2% y-o-y, while NOI amounted to SEK 384m 0% vs ABGSCe of SEK 385m and 6% y-o-y. The NOI margin amounted to 67.8% vs ABGSCe at 66.4% and 65.3% in 4Q'23. Rec. PTP amounted to SEK 176m -1% vs ABGSCe of SEK 177m and 57% y-o-y. DPS of SEK 1.1 vs ABGSCe of SEK 1.0. Occupancy was largely unchanged q-o-q at 92.4% (92.5% in Q3), 92.4% (92.6% in Q3) adjusted for projects. We think the topline miss versus our estimates partly is driven by timing of project completions.</font></p><h3 class="bm-h3">Slight yield contraction</h3><p><font color="#000000">Property value changes amounted to SEK 13m (0% of property value), compared to our estimate of SEK 179m (0.5%). The average valuation yield contracted by 0.2pp q-o-q to 5.2%. The adj. EPRA NRV (ABGSC calculation) amounted to SEK 91.3 per share, up 1% q-o-q and 0% vs ABGSCe. Net LTV increased slightly q-o-q from 47.1% to 47.7% in Q4. The average interest rate decreased by 0.1pp q-o-q to 4.0% by the end of Q4.</font></p><h3 class="bm-h3">Conclusion</h3><p><font color="#000000">Occupancy remained stable in the quarter at 92.4%, while management comment that the rental market remains hesitant. Guidance for 2025e of IFPM of SEK 900m, compared to our estimate of SEK 885m, with the improvement coming from lower rates. Our impression is that the topline miss is driven by timing of project contribution, meaning the miss should not be fully extrapolated ahead. We expect estimates to be fairly unchanged on the back of this report. The share should trade in-line with the sector today.</font></p></td></tr></table>

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