Akelius Residential Property (AKEL) Q1 2024 earnings summary

Executive summary

• Residential portfolio fair value was EUR 5,766m across 19,661 apartments in 10 cities; 98% was residential.

• Portfolio fair value mix was 40% United States, 36% Canada and 24% Europe; average walk score was 86.

• Q1 rental income rose 7.6% YoY to EUR 87m; EBITDA increased 25.7% to EUR 44m.

• Profit was EUR 12m versus a EUR 33m loss a year earlier; net asset value was EUR 3,379m at March 31.

• Residential vacancy was 5.7%, with real vacancy at 1.1%; property value included EUR 60m of exchange gains.

Financial highlights

• Rental income was EUR 87m, up 7.6% YoY; like-for-like (LFL) rental income growth was 8.2%, versus 13.1% in Q1 2023.

• NOI was EUR 47m versus EUR 40m; LFL NOI growth was 19.4%, and NOI margin rose to 54.2% from 49.1%.

• EBITDA was EUR 44m versus EUR 35m; operating profit was EUR 28m versus EUR 17m.

• Profit was EUR 12m versus a EUR 33m loss; profit before tax was EUR 31m versus a EUR 24m loss.

• Operating cash flow was EUR 11m versus EUR 37m; investing cash flow was EUR -39m and financing cash flow EUR -20m.

Outlook and guidance

• Priorities include stable revenue and long-term value growth, limited downside risk and lower volatility; focus remains on capital projects, vacancy reduction and portfolio improvement.

• Transactions are being approached selectively.

• No bond redemptions are due before November 2024, when SEK 854m of bonds mature.

• Thirteen London boiler optimization projects were approved in Q1, with estimated first-year gas savings of 194,801 kWh.