Sveafastigher IPO in Sweden launched at 50% discount to peers
Sveafastigher, a leading Swedish residential owner, placed its IPO on Friday as the first day of trading.
The book was multiple times oversubscribed, but the stock is still trading around the IPO price.
We bought in the IPO and bought more in the open market.
There are several strong catalysts over the next 30 days that should rerate the stock from its 50% discount to peers.
I found a full investment idea story below link:
https://fitinvestmentideas.com/2024/10/21/sveafastigher-ipo-in-sweden-launched-at-50-discount-to-peer-average-multiples/
The book was multiple times oversubscribed, but the stock is still trading around the IPO price.
We bought in the IPO and bought more in the open market.
There are several strong catalysts over the next 30 days that should rerate the stock from its 50% discount to peers.
I found a full investment idea story below link:
https://fitinvestmentideas.com/2024/10/21/sveafastigher-ipo-in-sweden-launched-at-50-discount-to-peer-average-multiples/
NordicGuy
22.10.2024 kl 10:26
241
NordicGuy
08.11.2024 kl 15:39
182
Strong shareholder list just published
https://corporate.sveafastigheter.se/en/investors/the-share/ownership-structure/
https://corporate.sveafastigheter.se/en/investors/the-share/ownership-structure/
NordicGuy
11.11.2024 kl 23:13
170
Sveafastigheter publishes shareholder list with very strong names!
Strong names!
https://corporate.sveafastigheter.se/en/investors/the-share/ownership-structure/
Strong names!
https://corporate.sveafastigheter.se/en/investors/the-share/ownership-structure/
NordicGuy
26.11.2024 kl 09:57
108
we have doubled our position in SVEAF today:
- the company is reporting tomorrow its first quarterly report since it was listed
- the major event will be the shareholder list from the IPO - there are very strong names - it is already on their www, but not many people noticed
- the day after it will be 40 days from the listing - that is the day of the blackout period - after 28/11, brokers will start publishing the invitation reports. there were five brokers in the syndicate. This could be a good newsflow.
- the company is reporting tomorrow its first quarterly report since it was listed
- the major event will be the shareholder list from the IPO - there are very strong names - it is already on their www, but not many people noticed
- the day after it will be 40 days from the listing - that is the day of the blackout period - after 28/11, brokers will start publishing the invitation reports. there were five brokers in the syndicate. This could be a good newsflow.
NordicGuy
26.11.2024 kl 10:31
105
Sveafastigheter is the largest listed Swedish real estate company, that was IPOed 38 days ago. SVEAD was listed at a 50% discount to its peers.
There are very strong catalysts in the coming days that should start the re-rating.
https://fitinvestmentideas.com/2024/11/26/why-we-doubled-our-position-in-sveafastigheter-today-other-trading-positions/
There are very strong catalysts in the coming days that should start the re-rating.
https://fitinvestmentideas.com/2024/11/26/why-we-doubled-our-position-in-sveafastigheter-today-other-trading-positions/
NordicGuy
27.11.2024 kl 09:27
96
Positive report this morning:
Note from broker:
Note: We are still in the backout period (finishes tomorrow)
SVEAFASTIGHETER – Q3 report is out
1) NAV (EPRA NRV) reported at SEK78.7 (+1% QOQ, while -0.8% compared with NAV by time of listing). Property values were written down by SEK265m, or -1% QOQ.
2) Vacancy rate improved to 5.3% (5.7% last quarter).
3) EBIT in Earnings Capacity for Investment properties were SEK803m (+1.5% QOQ). NOI margin incl admin in Q3 were 64% (while an annualized NOI margin guidance is 63% according to Earnings Capacity).
4) The stock is trading at 54% discount to last reported NAV.
Note that year-over-year figures in the report is not relevant due to changed asset base and capital structure.Key positives – vacancy rates down
• Rental income increased by 20.1 percent and amounted to SEK 1,009m (840). For comparable portfolio rental income increased by 6.0 percent.
• Net operating income increased by 21.9 percent and amounted to SEK 645m (529). For comparable portfolio, net operating income increased by 6.6 percent.
• Profit from property management amounted to SEK 123m (123).
Note from broker:
Note: We are still in the backout period (finishes tomorrow)
SVEAFASTIGHETER – Q3 report is out
1) NAV (EPRA NRV) reported at SEK78.7 (+1% QOQ, while -0.8% compared with NAV by time of listing). Property values were written down by SEK265m, or -1% QOQ.
2) Vacancy rate improved to 5.3% (5.7% last quarter).
3) EBIT in Earnings Capacity for Investment properties were SEK803m (+1.5% QOQ). NOI margin incl admin in Q3 were 64% (while an annualized NOI margin guidance is 63% according to Earnings Capacity).
4) The stock is trading at 54% discount to last reported NAV.
Note that year-over-year figures in the report is not relevant due to changed asset base and capital structure.Key positives – vacancy rates down
• Rental income increased by 20.1 percent and amounted to SEK 1,009m (840). For comparable portfolio rental income increased by 6.0 percent.
• Net operating income increased by 21.9 percent and amounted to SEK 645m (529). For comparable portfolio, net operating income increased by 6.6 percent.
• Profit from property management amounted to SEK 123m (123).
NordicGuy
28.11.2024 kl 13:15
81
SVEAF. Today is the end of blackout. 5 brokers in the syndicate. Intiations should push the share price higher. Now trading at 50% discout to peers according to DNB.
No brainer trade.
The links here provide more info on the thesis
No brainer trade.
The links here provide more info on the thesis
NordicGuy
02.12.2024 kl 11:00
51
DNB 62 pages intitation report:
¨
TWO in ONE
We believe Sveafastigheter standalone could get back to creating value in its sizeable residential development business and reinvest earnings from its SEK24.5bn portfolio of rent-regulated apartments. In our view, the segment is nearing an inflection point, backed by non-cyclical demand and our expectation of above-CPI rent increases for several years. The stock is trading at a 54% discount to NAV (sector average: 23%), which looks attractive given its 43% LTV and renewed balance sheet. We initiate coverage with a BUY and SEK47 target price.
Develops, owns and manages residential portfolio. Sveafastigheter has a SEK24.5bn diversified portfolio of c14,500 rent-regulated apartments across 260 properties in Sweden on top of ongoing projects worth another cSEK1.2bn (or 1,150 units) scheduled for completion over 2024–2026. Its average rent per sqm is below peers' (SEK1,513 versus SEK1,823, respectively, in Q2 2024). Around 3,700 units in its portfolio qualify for either a full or partial upgrade, for which it is targeting a ⟩7% yield-on cost. With mainly bank financing, and no JVs or alternative equity instruments, Sveafastigheter would be a pure investment case on a recovery in Sweden's residential rental segment.
Window to ramp up project development business. Sveafastigheter also has a Stockholm-focused land bank worth cSEK2bn. With limited competition, it sees a window to ramp up its development business, and is targeting construction start of 600–800 units annually. Since 2018, it has secured land allocations in the city of Stockholm equating to c1,680 apartments, more than any listed peer (including JM) – indicating it can grow its land bank further. It stands out in the peer group in terms of construction targets and track record, the latter providing a competitive advantage versus many of its peers, we believe.
We initiate coverage with a BUY and SEK47 target price, valuing the stock at a 2026e implied NOI yield of 5.0%, or a 4.5% EBIT yield, and equating 40% and 23% discounts to NAV and EV/GAV, respectively, versus 23% and 12% sector averages. Our target price also implies a 2026–2027e P/FFO of 18–16x, again below most peers, partly explained by Sveafastigheter's large land bank (SEK2bn). To us, the combination of its portfolio comprising solely of rent-regulated residential assets, low LTV of 43% at end-Q3 and longer average debt and interest rate profiles than peers indicates low risk, while its land bank offers significant upside potential in a market recovery.
¨
TWO in ONE
We believe Sveafastigheter standalone could get back to creating value in its sizeable residential development business and reinvest earnings from its SEK24.5bn portfolio of rent-regulated apartments. In our view, the segment is nearing an inflection point, backed by non-cyclical demand and our expectation of above-CPI rent increases for several years. The stock is trading at a 54% discount to NAV (sector average: 23%), which looks attractive given its 43% LTV and renewed balance sheet. We initiate coverage with a BUY and SEK47 target price.
Develops, owns and manages residential portfolio. Sveafastigheter has a SEK24.5bn diversified portfolio of c14,500 rent-regulated apartments across 260 properties in Sweden on top of ongoing projects worth another cSEK1.2bn (or 1,150 units) scheduled for completion over 2024–2026. Its average rent per sqm is below peers' (SEK1,513 versus SEK1,823, respectively, in Q2 2024). Around 3,700 units in its portfolio qualify for either a full or partial upgrade, for which it is targeting a ⟩7% yield-on cost. With mainly bank financing, and no JVs or alternative equity instruments, Sveafastigheter would be a pure investment case on a recovery in Sweden's residential rental segment.
Window to ramp up project development business. Sveafastigheter also has a Stockholm-focused land bank worth cSEK2bn. With limited competition, it sees a window to ramp up its development business, and is targeting construction start of 600–800 units annually. Since 2018, it has secured land allocations in the city of Stockholm equating to c1,680 apartments, more than any listed peer (including JM) – indicating it can grow its land bank further. It stands out in the peer group in terms of construction targets and track record, the latter providing a competitive advantage versus many of its peers, we believe.
We initiate coverage with a BUY and SEK47 target price, valuing the stock at a 2026e implied NOI yield of 5.0%, or a 4.5% EBIT yield, and equating 40% and 23% discounts to NAV and EV/GAV, respectively, versus 23% and 12% sector averages. Our target price also implies a 2026–2027e P/FFO of 18–16x, again below most peers, partly explained by Sveafastigheter's large land bank (SEK2bn). To us, the combination of its portfolio comprising solely of rent-regulated residential assets, low LTV of 43% at end-Q3 and longer average debt and interest rate profiles than peers indicates low risk, while its land bank offers significant upside potential in a market recovery.