Amhult 2 (AMH2) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 increased 13% to 93,677 TSEK, driven by full-year contributions from the Spitfire block and favorable rent indexation.

• Net income after tax rose sharply to 77,674 TSEK from 30,763 TSEK year-over-year, reflecting higher rental income and significant property value gains.

• Earnings per share reached 11.34 SEK, up from 4.49 SEK in 2023; no dividend proposed due to ongoing investment needs.

• Property value increased to 1,917,391 TSEK, mainly due to revaluations and rent increases; no new properties completed in 2024.

• Vacancy rate remained below 1%, indicating strong demand for residential units in Torslanda.

Financial highlights

• Operating income (rörelseresultat) for 2024 was 66,175 TSEK, up from 57,163 TSEK year-over-year.

• Property revaluations contributed 78,751 TSEK to earnings, a significant increase from 10,262 TSEK in 2023.

• Cash flow from operations before working capital changes was 23,603 TSEK, down from 31,722 TSEK in 2023.

• Cash and cash equivalents at year-end were 10,699 TSEK, compared to 24,357 TSEK at the end of 2023.

• Net asset value (EPRA NAV) per share increased to 141.66 SEK from 126.95 SEK.

Outlook and guidance

• Lower policy rates and green loans for 75% of debt are expected to reduce interest expenses in 2025.

• Modest rent increases anticipated for 2025 due to a lower CPI, limiting revenue growth compared to previous years.

• Decision on zoning change for Hercules property, potentially adding 30 apartments, expected in Q1 2025.

• Management expresses optimism for 2025, citing stable tenants, high demand, and a well-positioned team.