Top-line miss weighs on Q2 numbers FastPartner delivered Q2 results with rental income and net operating income both 2% below our forecast. Combined with slightly higher central administration costs and net financials, this resulted in rec. PTP 7% below our expectations for Q2. The occupancy rate was down slightly q-o-q at 91.3% (91.7% in Q1), and 91.8% (92.0% in Q1) adjusted for projects. In conclusion, the weaker top-line is the main driver behind our estimate revisions, while lower interest rate assumptions represent a positive offsetting factor, resulting in negative CEPS revisions of 1-3% for our forecast period.
Large potential letting in Q3/Q4 While the Q2 numbers were on the weak side, the CEO provided more detailed information regarding the letting of the Nasdaq premises in Frihamnen. Nasdaq will vacate 24,000 sqm by year-end, after which FastPartner plans to make a larger renovation of the premises (not quantified) which management expects could see the rental value double. The company is reportedly in late-stage discussions with potential tenants and expect to sign the lease in September/October this year. The project is likely to take 12–15 months, implying impact should come in 2027e; assuming full-year contribution, this corresponds to an increase in rental income of 5-6% relative to our current forecast for 2027e, and would rid the company of a vacancy that is perceived as difficult.
2025e P/CEPS of 14x, coverage average of 17x The share is trading at 2025e P/CEPS of ~15x, which is below the average in our coverage of 17x, and 8% below the average for office peers in our coverage at 16x. On 2025e P/EPRA NRV, the share is trading at 0.6x compared to office peers at 0.7x.