Cibus Nordic Real Estate (CIBUS) Q2 2024 earnings summary

Executive summary

• Rental income for Q2 2024 was EUR 30.4 million, up 3% year-over-year, with net operating income rising to EUR 30.5 million, aided by a one-off insurance payout; excluding this, NOI rose 2% year-over-year.

• Profit from property management was EUR 10.3 million for Q2 2024 (EUR 11.9 million excluding non-recurring items and FX); reported profit for the period was EUR 2.2 million.

• Six new grocery-anchored properties were acquired in Sweden for SEK 87.5 million (EUR 7.6 million), supporting Pan-Nordic expansion; portfolio expanded to 455 assets.

• Earnings capacity per share increased for the fourth consecutive quarter, reaching EUR 0.97 as of July 2024, up 7% since July 2023.

• The company maintains a focus on stable, CPI-linked cash flows from daily-goods properties, with 97% of properties anchored by such tenants.

Financial highlights

• Q2 2024 rental income was EUR 30.4 million; net operating income was EUR 30.5 million.

• Profit from property management was EUR 10.3 million (EUR 0.18/share); adjusted profit was EUR 11.9 million.

• Non-recurring items included a EUR 1.8 million insurance compensation and EUR -1.1 million in warrant program expenses.

• Unrealised property value changes were EUR -8.3 million in Q2, mainly in Finland and Denmark.

• LTV at quarter-end was 58.9%, with interest coverage ratio at 2.2x.

Outlook and guidance

• Earnings capacity per share increased to EUR 0.97 as of July 2024, up 7% year-over-year.

• CPI outlook and indexation support continued rental income growth.

• Market activity and transaction opportunities are expected to rise as interest rates fall.

• Focus remains on stable cash flows, monthly dividends, and accretive transactions.

• ESG initiatives include energy efficiency, solar panels, EV charging, and a goal to be climate neutral by 2030.