Today Cibus (OMX Stockholm, CIBUS) released its third quarter report. It is clear from the report that the company and its CEO have set their sights on continuing the hysterical pace of acquisitions. How it will end remains to be seen, but it is slowly moving in the right direction. By the right direction, I mean rising key figures per share. What good is acquisition if it does not generate higher earnings and dividends per share?
Cibus has two financial goals, those are:
- To provide a stable dividend monthly. The goal is to gradually increase it over time.
- That the net loan-to-value ratio should be between 55 – 65%.
The loan-to-value ratio is at the lower end of the target range while the dividend has not been raised in several years. The last change in the dividend was actually a reduction a few years ago. A lot has happened since then. When they reduced the dividend to 0.9 euros per share, that was exactly what they had coverage for then and there. It was during the small property crisis we had in Sweden. I call it the “small crisis” because there was no major danger with many property companies. It was more us investors who were nervous.
Today, Cibus reports earnings of 1.07 euros per share. In the same quarter of 2024, it was 0.99 euros and in Q2 2025, it was 1.05 euros per share. Earnings are ticking upwards and are expected to continue to do so in the coming quarters. The company now has a lower financing cost looking forward and they are getting more properties in, which are contributing to rising earnings. The new year is coming soon and with it will come automatic rent increases according to current contracts.
Cibus has failed to meet one of its two financial targets for a few years, but now they have the potential to deliver on both. A small increase in the dividend next year is clearly conceivable. That is the company’s financial target and what they should strive for. They have the space that the company has today and in a few quarters there will be even more space.
Net asset value per share is also rising slowly. As of Q3, the net asset value was EUR 12.9 per share. At a euro rate of 10.94, this means approximately SEK 141. As of Q2 2025, the net asset value was EUR 12.8.
The interest coverage ratio is 2.4 times as of Q3.
Cibus owns grocery properties, which is a high-yielding segment in the real estate sector. The average yield for the company’s properties is 6.4 percent. The lease agreements are triple net, which means that the tenant is responsible for most of the costs that arise around the property. The lease agreements have annual rent increases. In summary, this provides a very steady and reliable cash flow for Cibus.
It’s steady performance from Cibus. They’ve now ticked up earnings per share for several quarters in a row and that’s what really matters. I own Cibus today and think the report is okay. I will continue to add more to my portfolio.
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