Cibus Nordic Real Estate (CIBUS) Q2 2024 earnings summary

Executive summary

• Rental income increased 3% year-over-year to EUR 60.97 million for H1 2024, with net operating income up 9% in Q2 due to a one-off insurance payout; excluding this, net operating income rose 2% year-over-year.

• Profit for the period was EUR 2.2 million, but earnings after tax for H1 2024 were EUR -1.76 million, impacted by EUR -30.68 million in unrealised property value changes.

• Portfolio expanded to 455 assets, including six new grocery-anchored acquisitions in Sweden valued at SEK 87.5 million (EUR 7.6 million), and one property sold in Finland.

• Earnings capacity per share increased for the fourth consecutive quarter, reaching EUR 0.97/share as of July 2024, up 7% since July 2023.

• Dividend of EUR 0.90 per share to be distributed over 12 months following the 2024 AGM.

Financial highlights

• Q2 2024 rental income was EUR 30.45 million; net operating income was EUR 30.46 million, including a EUR 1.8 million insurance compensation.

• Profit from property management was EUR 10.32 million in Q2 (EUR 0.18/share); adjusted profit was EUR 11.91 million.

• Unrealised property value change was EUR -8.34 million in Q2, mainly in Finland and Denmark.

• Net debt LTV ratio at quarter-end was 58.9%, with interest coverage ratio at 2.2x.

• Cash and cash equivalents at period end were EUR 83.88 million.

Outlook and guidance

• Continued growth in earnings capacity per share is expected, supported by indexation, acquisitions, and stable cash flows.

• Inflation in core markets and anticipated interest rate cuts in Sweden and Finland support further rental income growth.

• Market activity is increasing, with more transaction opportunities anticipated as interest rates fall.

• Focus remains on stable cash flows, monthly dividends, and accretive transactions.