Wallenstam (Sell, TP: SEK40.00) - Asset values remain high
Q4 highlights were the slightly improved vacancy (5% vacancy in Gothenburg non-residential assets). The key negatives were: 1) 7% miss on PFPM versus consensus due to higher costs; 2) a DPS cut by 17% YOY; and 3) surprisingly no asset value write-downs based on its internal valuation method – its average residential yield is 3.5%, which seems elevated to us. We consider the stock valuation demanding on cash earnings, and given the soft outlook for development gains, we reiterate our SELL and have cut our target price to SEK40 (45).Wallenstam Byggn is a property company that builds, develops and administers properties for sustainable living and the pursuit of business in Stockholm and Gothenburg. Co. is also a producer and supplier of renewable energy through its subsidiary, Svensk NaturEnergi (NaturEnergi). Operations were run in three business areas - properties in the Gothenburg and Stockholm regions and renewable energy through NaturEnergi. The two property regions also include responsibility for leasing and management of housing and commercial premises together with planning and construction work. Operations at NaturEnergi consist of both the generation of, and trade in, renewable energy.
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.