Kungsleden (Buy, TP: SEK83.00) - Still attractive on peer-group valuation
Kungsleden reported a solid Q2, which has led us to make only minor model adjustments. We still find the stock attractive in terms of our NAV forecast and peer valuation. Kungsleden reported asset value changes close to zero in the quarter, while we forecast negative unrealised value changes of c5% in 2020–2022, which we believe are more than reflected in the current share price. We reiterate our BUY and have tweaked our target price to SEK83 (82); the stock is trading at a 24% discount to EPRA NRV.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.
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