Cibus Nordic - No surprises; updated earnings capacity provides color on the latest transaction
Cibus’ Jul-Sep 2018 quarter proceeded in-line with estimates. Net rental income and operating income came in as guided by the company’s earnings capacity. From now on, dividends will be paid on a quarterly basis.
- Operating income during the quarter, at EUR 7.2m, was consistent with the annual earnings capacity previously communicated by the company for the period (EUR 28.8m).
- Cibus previously announced an acquisition of six daily-goods properties in Finland at a cost of EUR 30m. The updated earnings capacity hints at an acquisition yield of ca 6.5%, i.e. an increase of EUR 2.0m in rental income. Correspondingly, the annual NOI capacity now stands at EUR 47.8m vs. EUR 45.8m previously. The six recently acquired properties are all let to Kesko and Tokmanni.
- Going forward, Cibus will pay dividends quarterly. Moreover, Cibus’ financial year will now follow the calendar year, meaning that the company’s next year-end report will be published in Feb 2019 for the period Jul-Dec 2018. Meanwhile board member Jonas Ahlblad (Sirius Capital Partners) will serve as an interim CEO until a new CEO has been appointed.
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