Studentbostäder i Norden AB (publ) (STUDBO.ST) fair value

ACCE thesis

Studentbostäder i Norden owns and operates purpose-built student housing across Swedish and Nordic university cities, earning rent from leases on its apartments and student accommodation. The durable edge is the asset base itself: a portfolio of centrally located, long-lived properties with a 55.5% operating margin and a 62.1% gross margin, which points to a business where occupancy and rent collection do most of the work. Revenue growth of 4.4% is modest, so the case rests less on expansion than on the cash generated by existing buildings and how the market prices them. The stock trades at a forward P/E of 4.0 on a market cap of about 826M SEK, while ROE of -1.0% reflects a balance sheet carrying real estate debt and depreciation rather than an earnings problem at the operating line. The obvious question for a deeper look is whether the discount to asset value is real or a function of leverage and rate sensitivity in Sweden's property market.