Nyfosa (Hold, TP: SEK95.00) - Consensus underestimating interest-rate sensitivity
We like Nyfosa long-term in the current high-CPI environment given its high-yielding asset base and its bank-tilted financing structure. We also believe it is a sign of quality that Sagax has increased its holding even further. However, our 2023–2024e profit from property management is 17–21% below consensus (which seems to be underestimating Nyfosa’s interest-rate sensitivity). We have cut our 2023–2024e EPS by 8–10% and our target price to SEK95 (123) on the raised valuation yield and reiterate our HOLD.Nyfosa AB is a Sweden-based real estate investment company. The Company's transaction-based investment strategy is not limited by property category, region, scope of the transaction or holding period. The Company focuses on commercial real estate, with the property portfolio divided into three categories: Offices, Logistics/Warehouse and Other. The properties are diversified geographically, with the office buildings mainly located in Swedish municipalities and the warehouses in transportation hubs across Sweden. The Other category includes retail premises, hotels and industrial spaces. The portfolio comprises more than 170 properties with a total leaseable area of approximately 1,500,000 square meters. The Company develops and adds value to its property holdings through active approach to property management. All of electricity supplied to its properties derives from renewable sources.
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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