We initiate coverage on Stenhus Fastigheter AB with a fair value range of SEK 11–16 per share and a base-case value of SEK 14/share, compared to the current share price of SEK 11.1. In recent years, the equity market has generally valued Nordic real estate companies with a yield gap above 2% (reported yield requirement less reported average interest rate) and a net debt/EBITDA below 12.0x at a premium to reported NAVs. Despite meeting these criteria, Stenhus remains an outlier, trading at a subs ....
