Logistea AB (FRA:1OL1) Q1 2025 Earnings Call Highlights: Strong Portfolio Growth Amid Revenue ...

In This Article:

  • Portfolio Value: Increased to 14.2 billion after recent acquisitions.

  • Occupancy Rate: Increased to 97.1% from 96.9% in the previous quarter.

  • NRV per Share: Reported at 15.4, with an adjusted figure of 15.7 excluding FX losses.

  • Loan to Value (LTV): Stable at 48.3%.

  • Revenue: Increased to 248 million, slightly below analyst estimates of 255 million.

  • Operating Margin: Increased to 88%, with an adjusted margin of 94% excluding rent supplements.

  • Net Operating Income (NOI): Increased by 177% due to an expanded property portfolio.

  • Income from Property Management: Increased by 54% per share compared to Q1 2024.

  • Interest Cover Ratio: 2.2 times for the last 12 months, with an estimated 2.4 times on the balance sheet day.

  • Interest Hedging Ratio: Increased from 67% to 74% during the quarter.

  • Net Initial Yield: Stable at 6.8%.

  • Average Cost of Debt: 4.8%, with new financing in Sweden at approximately 4%.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Logistea AB (FRA:1OL1) reported a significant increase in income from property management, with a 54% rise per share compared to the previous year.

  • The company's portfolio value increased to 14.2 billion, reflecting successful acquisitions and growth.

  • Occupancy rates improved slightly to 97.1%, indicating strong demand for their properties.

  • The company maintains a low loan-to-value (LTV) ratio of 48.3%, showcasing a healthy balance sheet.

  • Logistea AB (FRA:1OL1) has a strong pipeline of investment opportunities in the Nordic market, suggesting potential for future growth.

Negative Points

  • Revenue for the first quarter was below analyst estimates, primarily due to lower rent supplements and negative FX impacts.

  • The like-for-like portfolio saw a 2% drop in revenue, attributed to a lower economic occupancy rate.

  • The company experienced a minor negative letting for the quarter, with a reported loss of 1 million SEK.

  • There was a negative impact from FX rates, affecting the NRV per share and overall financial performance.

  • Bankruptcy of a tenant led to a decrease in rental income, although the impact was anticipated and managed.

Q & A Highlights

Q: Can you explain the decrease in rental income from the fourth quarter to the first quarter despite positive effects from indexation and shipping? A: The decrease to 230 million in income, excluding rent supplements, is due to both FX loss and a slightly lower occupancy rate in the like-for-like portfolio, which was affected by a bankruptcy in the third quarter of 2024. - Philip Lofgren, CFO