* Solid lettings in the wake of Nasdaq, but timing uncertain * Estimates hit by higher interest rate assumptions * 2026e P/CEPS of 12x vs coverage average of 14x
Q1 results very much in line with our expectations
FastPartner delivered rental income, NOI and rec. PTP in line with our forecasts, while NOI was 3% below FactSet consensus. Occupancy deteriorated by 2.1pp q-o-q to 89.2% (89.7% adjusted for projects), driven by Nasdaq vacating its premises in Frihamnen. The NOI margin deteriorated by 0.9pp y-o-y to 64.5%, primarily driven by a softer top-line, where cost reductions have been counteracted by an increase in property taxation. We make negative CEPS revisions of 1-4%, driven primarily by higher rates in our forecast.
A chunk of the Nasdaq vacancy is already off the market
The 23,000 sqm let to Nasdaq in Frihamnen expired as of year-end 2025, which was the key driver behind the 2.1pp vacancy increase in Q1. In conjunction with the report, the company announced a 10-year lease of 15,000 sqm to MagasinX, i.e. ~60% of the lettable area, while a number of existing tenants in the property have also extended and expanded their leases. However, we have no information on move-in timing, capex or rental levels, which makes it difficult to access the impact; we have assumed the same rental level as for Nasdaq starting Q1'27e. We are ~1% below IFPM NTM guidance of SEK 780, likely pertaining to letting timing and our revised interest rate assumptions. Management highlights a continued challenging rental market, fuelled by both a weak economic cycle and AI reducing demand for office premises, and targets earnings returning to 'normalised' levels in 2027e.
2026e P/CEPS of 12x, coverage average of 14x
The share is trading at 2026e P/CEPS of 12x, below the average in our coverage of 14x and the average for office peers in our coverage at 15x. On 2026e P/EPRA NRV, the share is trading at 0.4x compared to office peers at 0.6x.