Cibus Nordic Real Estate (CIBUS) Q3 2024 earnings summary

Executive summary

• Directed share issue in September 2024 raised SEK 927 million at a 20% premium to NAV, supporting growth ambitions and future acquisitions.

• Acquisitions totaling EUR 43 million (SEK 500 million) in 2024, with 15 new assets added, mainly in the second half of the year, including major deals in Denmark, Finland, and Sweden.

• Divested four small, non-strategic, vacant buildings in Finland at book value.

• Continued focus on stable cash flows, with 97% of interest rate exposure hedged and 90%+ of leases net or triple net.

• Earnings capacity per share increased to EUR 0.99 as of October 2024, up from EUR 0.97 in July 2024 and EUR 0.91 in July 2023.

Financial highlights

• Rental income for Jan–Sep 2024 was EUR 91.4 million (EUR 89.1 million in 2023); Q3 rental income was EUR 30.4 million (EUR 29.8 million in 2023).

• Net operating income for Jan–Sep 2024 was EUR 87.8 million (EUR 86.6 million in 2023); Q3 net operating income was EUR 29.2 million (EUR 30.95 million in 2023, including non-recurring income).

• Profit from property management for Jan–Sep 2024 was EUR 35.7 million (EUR 40.1 million in 2023); Q3 profit from property management was EUR 13.2 million.

• Profit for the period was EUR -5.5 million in Q3 2024, mainly due to unrealized changes in property values and derivatives.

• Dividend yield was 5.8% with a quarterly payout of EUR 0.22 per share and annual policy of EUR 0.90 per share.

Outlook and guidance

• Strong acquisition pipeline with SEK 2 billion in headroom; ongoing processes to deploy capital prudently.

• Focus on growing earnings capacity per share through accretive acquisitions, indexation, and refinancing.

• WAULT expected to remain stable around 5 years, supporting predictable cash flows.

• ESG remains a priority, with a target of carbon neutrality by 2030, ongoing solar panel installations, and green financing frameworks.

• Market outlook is positive with expectations of declining interest rates and a gradually improving transaction market.