Akelius Residential Property (AKEL) Q4 2024 earnings summary

Executive summary

• Rental income rose 7.4% to EUR 357 million for 2024, with like-for-like growth of 6.8%; net operating income increased 15.7% to EUR 200 million, and EBITDA grew 19.6% to EUR 186 million, driven by higher occupancy and new leases.

• Net loss narrowed to EUR -79 million from EUR -260 million in 2023, mainly due to a smaller negative revaluation of properties and financial assets.

• Property portfolio expanded to 20,072 apartments with a fair value of EUR 5,992 million; real vacancy rate was 1.9% and overall vacancy rate improved to 4.7%.

• Loan-to-value ratio decreased to 36% (from 42%), and equity ratio improved to 50% (from 42%) following a EUR 502 million share issue.

• Major acquisitions included a 214-unit property in Washington D.C.; eight Paris properties were sold, and further asset sales are planned to support debt repayment.

Financial highlights

• Like-for-like net operating income grew 14.3%, supported by higher occupancy, new lease levels, and capital project completions.

• Net operating income margin increased to 55.9% (from 51.9%).

• Property revaluation loss was EUR -102 million (-1.8%), a significant improvement from EUR -582 million in 2023.

• Cash sources to cash uses ratio rose to 253% (from 170%), and available liquidity was EUR 691 million.

• Interest coverage ratio dropped to 4.7 (from 21.7), reflecting lower interest income and higher net interest expenses.

Outlook and guidance

• Board expects to sell remaining Castellum AB shares to the parent company in early 2025, with proceeds earmarked for debt repayment.

• Focus remains on reducing vacancies, completing capital projects, and selective acquisitions to enhance portfolio quality.

• Dividend proposal of up to EUR 0.10 per class D share (EUR 22 million total) for 2025.