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Third party research

Fastpartner: Debt on floating rates hurts - ABG

Fastpartner

This is a third party research report and does not necessarily reflect our views or values

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• Significant est. revisions from higher interest rates
• Second credit rating downgrade has no impact
• LTV below 50%, but 2024e ICR below 2x (target >3x)

All about financing costs
Fastpartner delivered a Q2 report with rental income of SEK 553m (-3% vs ABGSCe) while the NOI margin was strong and expanded by 1.9pp y-o-y, taking NOI and EBIT -1% and -0%, respectively. We attribute the topline miss to a smaller incremental contribution from projects than expected (rental income was down q-o-q), which filters through to forward-looking estimates. IFPM in Q2 was yet again below ABGSCe, fully explained by net financial expenses. FPAR has most of its debt on floating terms, and the recent increase in interest rate expectations takes down CEPS estimates by ~11-21% in our forecast period.
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