Annehem Fastigheter (ANNE) Q4 2024 earnings summary

Executive summary

• Rent revenue rose 11.2% year-over-year to SEK 275.0 million, driven by indexation, acquisitions, and new lettings.

• Net operating income increased 10.4% to SEK 231.6 million, with positive net letting of SEK 15.3 million.

• Income from property management (excl. currency effects) grew 5.0% to SEK 97.3 million, but per share fell to SEK 1.14 due to a rights issue.

• Net income for the year was SEK 18.5 million, a significant improvement from SEK -200.6 million last year.

• Major refinancing and a new acquisition in Malmö support growth and diversification.

Financial highlights

• Fair value of investment properties increased to SEK 4,696.8 million from SEK 4,412.7 million.

• Investments in existing properties totaled SEK 71.2 million, down from SEK 95.8 million.

• Unrealised property value change was SEK -57.8 million, a smaller decline than last year.

• Economic occupancy rate declined to 91.5% from 94.9% due to a softer office market.

• Cash flow from operating activities was SEK 56.9 million, down from SEK 102.4 million.

Outlook and guidance

• Revised financial targets: at least 20% annual growth in income from property management and 10% annual growth in EPRA NRV.

• Net loan-to-value ratio target set not to exceed 55% over time; current ratio is 40.8%.

• Long-term interest coverage ratio target above 2.2x; current is 2.1x.

• Profits to be primarily reinvested to support growth objectives.