Real Estate company Cibus (OMX Stockholm -Cibus) delivered a reasonable report today. They are coming off a period of several years where they acquired at a hysterical pace without creating significant shareholder value. Cibus has acted very mediocre and I have long hoped for change. Basically, the company has a superb focus on properties where grocery stores are operated. These are good properties with reliable cash flows over time. It is also a high-yielding property type.
Cibus business model and goals are sound. This weeks report is in the right direction.
Current earnings per share are EUR 1.11, which is 6 percent higher than the same period last year. The net asset value is 13 euros per share.
The loan-to-value ratio is 59.1 percent and it is okay within Cibus’s financial goals.
Below are Cibus’s two financial goals:
- 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%.
I hope that Cibus is on the right track and continues to create shareholder value. That the earnings per share grows steadily over time and that they deliver on their goal of increasing the dividend over time. The dividend has now been unchanged at 0.9 euros for several years and it is only now that they have built up such a high level of coverage that it is starting to become reasonable to increase it again. I believe in a small increase next year and from there small increases every year.
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