Akelius Residential Property (AKEL) Q1 2022 earnings summary

Executive summary

• Residential portfolio fair value was €6,334m at 31 Mar 2022, comprising 18,395 apartments across eight metropolitan cities; real vacancy was 2.7%.

• Rental income rose 36.6% YoY to €66m; like-for-like rental income grew 9.5% and NOI rose 20.9%.

• Continuing-operations loss was €58m versus €18m, including a €175m fair-value loss on financial assets.

Financial highlights

• Rental income was €66m versus €48m; NOI rose to €32m from €21m, with reported NOI margin of 48.4% versus 44.5%.

• EBITDA increased 45.3% to €26m from €18m, primarily from acquisitions and like-for-like NOI growth.

• Loss before tax was €75m versus €16m, including a €175m fair-value loss on financial assets.

• Property fair value was €6,334m; like-for-like rental income and NOI growth averaged 4.5% and 7.3% in Jan–Mar 2022.

Segment performance

• Q1 NOI was €8m in Europe versus €6m, €15m in the US versus €7m, and €9m in Canada versus €8m YoY.

• Property return was 3.0% overall; regional returns were 1.5% in Europe, 4.4% in the US and 1.4% in Canada.

• North America represented 77% of portfolio fair value and Europe 23%; location mix was 63% prime, 28% mid and 9% entry.

• City fair-value shares: Toronto 20%, Montreal 17%, London 16%, Washington D.C. 14%, New York 13%, Boston 10%, Paris 7% and Austin 3%.