Castellum (Hold, TP: SEK125.00) - DPS streak could end
The Q3 report was solid, as the rental market held up and PFPM (adjusted for one-off) was 3% above consensus. The shares screen at a 2024e EBIT yield of 5.8% and 9.5x P/FFO; however, as we expect DPS cuts and see a possible need for an equity injection (due to limited headroom to its investment grade rating) if asset values fall, we remain on the sidelines. We reiterate our HOLD and have cut our target price to SEK125 (150).Castellum operates as a real estate company in Sweden. Co.'s real estate portfolio is located in five regions: Greater Gothenburg, Oresund Region, Greater Stockholm, Malardalen and Eastern Gotaland. At Dec 31 2013 Co.'s real estate portfolio comprised 626 properties, of which 324 were office/retail properties, 263 were warehouse/industrial properties, 16 were for project, and 23 were undeveloped land.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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