Akelius Residential Property (AKEL) Q2 2024 earnings summary

Executive summary

• Rental income rose 7.9% year-over-year to EUR 176 million, with like-for-like growth of 7.6% driven by higher occupancy and rent levels.

• Net operating income increased 19.2% to EUR 97 million, with a margin of 55.4%.

• EBITDA grew 24% to EUR 90 million, but the period ended with a net loss of EUR 58 million, mainly due to negative revaluations and financial items.

• Property portfolio fair value was EUR 5,901 million, down 4% year-over-year, with a capitalization rate of 4.78%.

• Loan-to-value ratio stood at 36%, slightly above the financial policy threshold, with Board approval for the deviation.

Financial highlights

• Rental income: EUR 176 million (up from EUR 163 million year-over-year).

• Net operating income: EUR 97 million (up from EUR 82 million year-over-year).

• EBITDA: EUR 90 million (up from EUR 72 million year-over-year).

• Net loss: EUR 58 million (improved from EUR 69 million loss year-over-year).

• Net asset value: EUR 3,349 million (down from EUR 4,347 million year-over-year).

• Property investments: EUR 79 million; property acquisition in Montreal for EUR 67 million.

• Property sales: EUR 3 million from three Paris properties; seven more Paris properties signed for sale.

Outlook and guidance

• Capitalization rates have stabilized, and the company is monitoring transaction markets closely, remaining selective with acquisitions.

• Akelius is analyzing options to refinance 2025 debt maturities, supported by an upsized EUR 1,900 million financial guarantee.

• Focus remains on property upgrades, reducing vacancies, and improving portfolio quality.