Kungsleden (Buy, TP: SEK100.00) - Aiming high
With its Q4 results, Kungsleden announced its new five-year strategy and growth targets. It is now aiming for a property portfolio of minimum SEK55bn and profit from property management (EBVAT) of at least SEK1,650m by 2025. This seems ambitious, given targets of an LTV <45% and dividend payout >50% of EPS, but offers upside potential to our forecasts and consensus. The Q4 report was in line with our estimates and consensus, but we note that, while positive, net lettings are declining, as for peers. We reiterate our BUY, and have raised our target price to SEK100 (93).Kungsleden is a property company based in Sweden. Co.'s property holdings consist of commercial premises in Greater Stockholm, Malardalen, southwest Sweden and growth towns in Norrland. The portfolio is segmented into Office, Industrial/warehouses, Retail and Other. Co.'s operating segments are properties, which manage and develop properties and provides premises for external customers; and Nordic Modular, which lets modular buildings in a corresponding way as traditional premises and also produces and sells modules to external customers. As of Dec 31 2013, Co. had 366 total properties, of which 139 were offices, 135 were industrial/warehouses, 68 were retail, and 24 were other properties.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.