Hardworking night owl Frans has completed the company report on Ovaro after the Q3 releases. 
Real estate development company Ovaro’s Q3 was slightly better than expected due to the positive development of net revenues and cost structure, even though development projects had not yet materialized as we anticipated. The market situation remains difficult, but development projects are progressing largely according to plan. The launch of the Kerava owner-occupied housing project next year appears increasingly likely, while the 17 MEUR student housing project agreed upon in Jyväskylä’s Kukkula project strengthens the overall picture of Kukkula. Updates we made to the timing of the project pipeline partly shift revenues to 2027, but our NAV estimate remained practically stable. With a low valuation (P/B 0.56x), strengthened financial position, and the potential of the project pipeline, we still see the risk/reward ratio as positive. We reiterate our target price of 3.70 euros and our Add recommendation.