In This Article:
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Rental Income Increase: 5.9% increase on a like-for-like basis.
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Net Operating Income Increase: 7.4% increase compared to the same period last year.
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Debt Reduction: Reduced debt by SEK4 million to SEK3 billion over the last two years.
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Property Value Decrease: 0.8% decrease during the quarter.
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Equity Raised: SEK1.6 billion from bond exchange and SEK3 billion from stock market listing.
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Loan to Value Ratio: 62.2% this quarter.
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Average Interest Rate Cost: 2.33% during the past quarter.
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Average Debt Maturity: 3.3 years, with 67% maturing beyond 2026.
Release Date: November 27, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Rental income increased by 5.9% on a like-for-like basis, indicating strong performance in the core business.
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Net operating income grew by 7.4%, showing effective cost management and revenue growth.
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Debt reduction efforts have been successful, with a decrease from SEK4 billion to SEK3 billion over the past two years.
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The company has secured long-term financing from Nordic banks and additional credit lines, enhancing financial stability.
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Strong development in the residential segment is expected, with rental growth anticipated to outpace inflation.
Negative Points
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Property valuations decreased by 0.8% during the quarter, reflecting ongoing challenges in the real estate market.
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Occupancy rates have slightly decreased due to project-related vacancies, impacting short-term revenue.
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Loan-to-value ratio remains high at 62.2%, which the company aims to reduce.
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Interest coverage ratio (ICR) is slightly below the company's policy, indicating pressure on financial metrics.
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Unrealized changes in property values amounted to negative SEK0.5 billion, affecting overall asset valuation.
Q & A Highlights
Q: Can you provide more details on the new credit facility mentioned in your filing? Is it a straightforward revolving credit facility (RCF), and do you have full access to it for liquidity needs? A: Yes, the facility is in place and ready to be utilized whenever needed. However, we cannot provide more details on the maturity or terms at this point.
Q: Regarding the occupancy decline, can you provide more detail on which types of tenants are departing? Is this indicative of a work-from-home trend? A: We focus on residential and long-term leases to publicly financed tenants, which provides a strong income stream. While there are some agreements that can be vacant, it shouldn't be a large concern. The decline is mainly due to public offices, which is a small part of our business.