In This Article:
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Rental Income: Increased by 17% to SEK1,566 million.
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Profit from Property Management: Increased by 7% to SEK911 million.
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Income from Property Management per Share: SEK16.78 per share.
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Loan-to-Value (LTV): 37.6%.
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Net Asset Value (NRV) per Share: Increased to SEK416.
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Equity Raised: SEK3.1 billion in the quarter, totaling SEK5 billion year-to-date.
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Debt Raised: SEK2.5 billion in the quarter, totaling almost SEK5 billion year-to-date.
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Net Leasing: SEK21 million for the quarter, SEK66 million year-to-date.
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Letting Ratio: Almost 97%.
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Average Interest Rate Maturity: 2.7 years.
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Portfolio Value: Exceeds SEK40 billion.
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Development Pipeline: SEK2.6 billion with SEK800 million remaining investments.
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Yield on Cost for New Developments: Average of 6.7%.
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Acquisitions: SEK8.6 billion, including a large property in Denmark.
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Divestments: Almost SEK600 million.
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Development Capex: SEK1.9 billion.
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Weighted Average Yield Valuation: 5.9% exit yield, 5.5% initial yield.
Release Date: October 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Catena AB (FRA:T9R) reported a 17% increase in rental income, reaching SEK1,566 million, driven by acquisitions and CPI-linked contracts.
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The company has a solid balance sheet with a loan-to-value (LTV) ratio of 37.6%, providing headroom for future investments.
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Catena AB received an upgraded credit rating from Fitch, reflecting strong performance and strategy.
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The acquisition of DSV HS in Denmark, the largest logistics center in Denmark, is expected to significantly boost earnings capacity.
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The company's net leasing was positive, with a letting ratio of almost 97% and a weighted average lease expiry (WALE) of 6.7 years.
Negative Points
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Profit from property management per share decreased to SEK16.78, attributed to temporary factors.
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There was a SEK28 million write-down in joint venture companies, although partially offset by a SEK37 million value uplift.
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The transaction market is becoming more competitive, potentially impacting Catena AB's ability to secure favorable deals.
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Development projects are facing delays due to challenges with natural values and administrative approvals.
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The macroeconomic environment remains uncertain, with potential impacts from political challenges and central bank policies in Europe.
Q & A Highlights
Q: You mentioned more bidders and aggressive bids in the transaction market. Does this imply we are past an inflection point on yields, and how does this impact your capital allocation decisions? A: Yes, we have observed more players with sharper bids, suggesting potential valuation uplifts in the portfolio. However, it may take about six months for external evaluators to confirm lower yields. This competitive market could make it tougher for us in some transactions, but we have historically found successful projects and acquisitions.