Brinova Fastigheter (BRIN) investor relations material

Executive summary

• Jan–Sep rental income rose 22% YoY, mainly following the K-Fastigheter Syd portfolio acquisition; net operating surplus increased 15% and property-management profit rose 10%.

• Residential occupancy reached 96%; portfolio occupancy was 95.5%, with management prioritising lettings, cost efficiency and portfolio development.

• Property value was SEK 19,010m at 30 Sep; equity ratio was 38.5% and net LTV 57.4%.

Financial highlights

• Jan–Sep rental income SEK 820.0m (+22% YoY); Q3 SEK 273.7m (+4%), with like-for-like rental income also up 4%.

• Jan–Sep net operating surplus SEK 529.5m (+15%); surplus ratio 64.6% versus 68.5% YoY. Q3 surplus was SEK 189.0m, up from SEK 186.6m.

• Jan–Sep property-management profit was SEK 213.7m (+10%); adjusted for SEK 4.9m of non-recurring early loan-redemption costs, it was SEK 218.6m. Q3 profit was SEK 87.2m (+11%).

• Jan–Sep profit was SEK 246.7m versus SEK 96.8m; basic and diluted EPS was SEK 1.07 versus SEK 0.50. Derivative value gains and property valuation changes contributed to results.

• Operating cash flow before working-capital changes was SEK 212.1m versus SEK 197.7m; period-end cash was SEK 103.6m.

Outlook and guidance

• Twelve-month earnings capacity from 1 Oct estimates property-management profit of SEK 371m before projects and SEK 383m including projects completed in 2027; this is an earnings-capacity estimate, not a forecast.

• Earnings capacity includes SEK 1,213m rental value and SEK 779m net operating surplus before projects; including projects, these rise to SEK 1,238m and SEK 801m, respectively.

• Supplier-contract reviews and property-management efficiency initiatives aim for initial effects in 2027; the Eslöv LSS project is planned to start construction in November.

• Board financial targets for 2025–2027 include interest coverage above 1.75x, LTV below 60%, equity ratio above 30%, debt ratio below 14x and annual property-management profit-per-share growth of at least 10%.