Klövern (Hold, TP: SEK14.00) - Rise in already-high vacancy rate
Higher rent discounts and customer losses than forecast left adj. EBT 15% below our estimate and consensus in Q2. Occupancy remains a concern, as the economic vacancy rate rose to 12% (+1%-point QOQ), but as high as 20% based on sqm. We have cut our 2022e EPS by 16% after updating our development forecasts, as well as on our expectation of a continued rise in vacancies. We reiterate our HOLD but have lowered our target price to SEK14 (15), implying a 2022e P/FFO of 14x (adj. LTV of 72%), below its peer group average of 15.5x (adj. LTV of 48%).
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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