Mid Cap Stockholm (CIBUS)
Is Cibus actually a monthly distributor?
I thought a bit at that Cibus’s dividend comes from the income that their tenants pay in advance . Cibus receives money either monthly or quarterly in advance and this should be distributed directly to the owners.
For example, Realty Income has been a more pure monthly dividend provider as they report every month what the next dividend will be and can introduce dividend increases now and then during the year depending on how things are going.
Time to start delivering
In 2019 the dividend was 9.8 SEK/share and today it is 9.9 SEK/share. In 2019, there were 31.1 million outstanding shares and today that number is 82.1 million. When you raise capital and print new shares, it also means that each new share should generate a dividend. At the same time, you should also get an increased management profit when investing in new properties.
This type of magic is common among American REITs and they also compare themselves to them. What we investors also want to see is that the management profit/share increases and that the dividend is thus higher.
The picture below clearly shows that the management profit is basically down to the same level as at the IPO. Of course, interest rates have taken their toll and what the market is now seeing is that the interest rate relief is gradually starting to make a difference to what the company pays for its loans. We will probably see dividend increases if everything continues at the same pace.
Today, the stock is trading at a very low yield of about 5.2%. You could get more when interest rates were at their worst. The yield was almost 11% back then.
Obviously, I don’t think Cibus is a bad option as I am slowly buying more shares during 2025.
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