Cibus Nordic Real Estate (CIBUS) Q3 2024 earnings summary

Executive summary

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

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

• Divested four small, non-strategic, empty 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.

• Profit for Jan–Sep 2024 was -EUR 7.3 million, mainly due to negative unrealised changes in property and derivative values.

Financial highlights

• Rental income for Jan–Sep 2024 was EUR 91.4 million, up 3% year-over-year; Q3 rental income rose 2% to EUR 30.4 million.

• Net operating income for Jan–Sep 2024 was EUR 87.8 million, up 1% year-over-year; Q3 net operating income was EUR 29.2 million, excluding non-recurring income from Q3 2023.

• Profit from property management for Jan–Sep 2024 was EUR 35.7 million, down 11% year-over-year; Q3 profit from property management was EUR 14.2 million, excluding non-recurring items and FX effects.

• Earnings per share for Jan–Sep 2024 was EUR -0.16; Q3 was EUR -0.11.

• Dividend yield was 5.8% with a quarterly payout of EUR 0.22 per share; dividend for the 12 months following the 2024 AGM set at EUR 0.90 per share, paid monthly.

Outlook and guidance

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

• Management expects increased earnings capacity per share as proceeds from the share issue are deployed for acquisitions.

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

• Indexation expected to drive further NOI growth, though at a slower pace.

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