In This Article:
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Wallenstam AB (STU:WAE) invested SEK 2.1 billion in new and reconstruction projects, indicating strong commitment to growth and development.
-
The company started construction of 577 apartments and completed 354, all of which are fully occupied, showcasing effective project management and demand.
-
Rental income increased by SEK 193 million, a 7% rise, driven by both comparable holdings and new constructions.
-
The company achieved a surplus ratio of 76%, reflecting efficient cost management and profitability.
-
Wallenstam AB (STU:WAE) has a stable balance sheet with an equity ratio of 45% and an LTV of 46%, indicating financial stability.
Negative Points
-
The company experienced refrigerant leakage, leading to an increase in CO2 emissions compared to the previous year.
-
Interest-bearing liabilities increased by SEK 1.3 billion, raising concerns about debt levels.
-
The financial net was higher by 13% compared to last year, indicating increased financial costs.
-
The company recognized an impairment loss of SEK 62 million in wind turbines due to lower forecasted electricity prices.
-
Wallenstam AB (STU:WAE) wrote down its holding in Commando to zero, reflecting challenges in associated companies.
Q & A Highlights
Q: Can you provide more details on the recent acquisition of the Service property in Stockholm? A: Susann Linde, CFO, explained that Wallenstam AB acquired the Service property from AMF for SEK 2.8 billion. The transaction was completed in December, and it is expected to enhance the company's portfolio in Stockholm significantly.
Q: What is the rationale behind the sale of the four commercial properties? A: Susann Linde, CFO, stated that the sale of the four commercial properties, totaling SEK 1.25 billion, was part of a strategic decision to optimize the company's portfolio. The properties were sold to Pig a Passion and So Yell, and the transactions have been finalized.
Q: How is Wallenstam AB managing interest rate risks? A: Susann Linde, CFO, mentioned that the company has hedged interest rates using derivatives, securing 72% of its total loan volume. This strategy was implemented when long-term interest rates were favorable, and the average fixed interest rate term has been extended to 52 months.
Q: Could you elaborate on the sustainability goals and achievements for 2024? A: Susann Linde, CFO, highlighted that Wallenstam AB aims to reduce CO2 emissions by 50% by 2030. In 2024, the company achieved a 31% reduction in Scope 1 emissions and a 40% reduction in Scope 2 emissions, primarily due to decreased energy consumption and supplier emissions.