Sveafastigheter (SVEAF) investor relations material

Executive summary

• Rental income increased by 6% year-over-year to SEK 398 million, with like-for-like growth of 4.9%.

• Occupancy improved to 95.5–95.7%, up from the previous year.

• Profit for the period surged to SEK 277 million, driven by SEK 148 million in positive property value changes.

• Strategic share buybacks and refinancing activities enhanced financial flexibility.

• Divestment of the Solhusen project in Nacka post-quarter generated a project gain of SEK 84 million and a margin of 24%.

Financial highlights

• Net operating income grew by 5.3% to SEK 202 million, with a like-for-like increase of 3.9%.

• NOI margin improved to 60% year-over-year.

• Profit from property management was SEK 62 million.

• Profit for the quarter totaled SEK 277 million, including a positive property value change of SEK 148 million.

• One-off effects totaled SEK 23 million, mainly from weather and financial items.

Outlook and guidance

• Focus on further improving operational profitability, NOI margin, and capital structure.

• Plans to initiate new project starts in the Stockholm region during the year.

• Targeting upgrades of at least 2,000 apartments from July 2024 to June 2029.

• Aims to start construction of 600–800 apartments per year, with a yield on cost of ~5.5%.

• Share buybacks and selective divestments remain key capital allocation strategies.