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Third party research

Trianon: Favourable development in interest maturity - Nordea

Trianon

This is a third party research report and does not necessarily reflect our views or values

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Trianon reported solid Q1 2022 numbers, with adjusted EPS growth of 42% y/y, EPRA NAV up 35% y/y, earnings capacity up 13% y/y and positive net letting of SEK 3.7m. We expect 11-13% NAV growth in 2022E-24E, mainly driven by its cash earnings yield and project profits. We argue that growth is likely to be boosted by further acquisitions, which are not included in our estimates. While we see good prospects for continued NAV gains, we argue that rising interest rates could hurt adjusted EPS growth due to high leverage and a limited ability to adjust rents in the face of greater inflation. Marketing material commissioned by Trianon.
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