Sweden's Dios Fastigheter Q3 rental income falls on lower summer demand

Overview

• Sweden property firm's Q3 rental income fell 2%, while income from property management rose 5%

• Q3 operating surplus decreased 1% to SEK 479 mln

• Company saw increased rental market activity in September after quieter summer months

Outlook

• Company says rental market activity increased in September after quieter summer months

• Company sees continued selective market with tenants prioritising location, functionality and quality

• Diös says priorities remain close tenant relationships, high letting activity and efficient property management

Result Drivers

• RENTAL MARKET ACTIVITY - Co said rental market activity increased in September following quieter summer months

• SELECTIVE TENANT DEMAND - Co said tenants are increasingly prioritizing location, functionality and quality of premises

• NET LETTING IMPROVEMENT - Net letting rose to SEK 4 mln in the qtr from SEK 1 mln a year earlier

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the real estate rental, development & operations peer group is "buy"

• Wall Street's median 12-month price target for Dios Fastigheter AB is SEK75.50, about 33.2% above its October 22 closing price of SEK56.70

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• Oct 22 - Sweden's Eastnine property portfolio grows 27% after Warsaw deal

• Oct 22 - Sweden's Sagax Q3 rental revenue slightly beats estimates, profit forecast raised

• Oct 22 - Sweden's Castellum nine-month income falls on divestments

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)