Akelius Residential Property (AKEL) Q4 2023 earnings summary

Executive summary

• Residential property fair value was EUR 5,686 million across 19,652 apartments at Dec 31, 2023; real vacancy was 1.3%.

• Rental income rose 10.0% to EUR 333 million; LFL rental growth was 10.8%, LFL NOI growth was 18.0%, and EBITDA rose 22.3% to EUR 156 million.

• Property fair value fell 9.4% amid higher capitalization rates; a EUR 1,314 million extra dividend contributed to LTV rising to 42% and reduced liquidity.

Financial highlights

• FY NOI was EUR 173 million versus EUR 148 million; reported growth was 16.7%, LFL growth 18.0%, and NOI margin 51.9% versus 48.9%.

• Net loss narrowed to EUR 260 million from EUR 597 million; basic and diluted EPS were -EUR 0.04 versus -EUR 0.11.

• Q4 rental income was EUR 86 million versus EUR 83 million, NOI EUR 46 million versus EUR 41 million, and net loss EUR 95 million versus EUR 443 million.

• Operating cash flow before working-capital changes was EUR 133 million versus EUR 106 million; year-end cash and cash equivalents were EUR 74 million versus EUR 217 million.

Outlook and guidance

• LFL NOI growth is expected to continue during 2024; further vacancy decreases are expected as upgrades and management initiatives continue.

• Rental growth is expected to support property value growth over time; no new borrowings are currently needed, and the owner guarantee supports repayment of maturing debt.

• Earning capacity implies EUR 356 million rental income, EUR 197 million NOI, EUR 181 million EBITDA and 4.1x interest coverage; it is not a forecast for the next 12 months.