Asuntosalkku (ASUNTO) Q3 2024 earnings summary

Executive summary

• Revenue increased by 12.5% year-over-year to €14.1 million for the nine months ended 30.6.2024, with Q3 revenue up 8.3% to €4.9 million, driven by growth in the number of apartments and higher rental levels in Tallinn, as well as portfolio sales gains.

• Net rental income rose 2.6% year-over-year to €8.6 million, with a Q3 rise of 2.0% to €2.9 million, supported by increased apartment count and higher rents, especially in Tallinn.

• Realized profit for the nine months was -€0.5 million (down from €3.4 million), impacted by one-time refinancing costs and higher interest expenses.

• Portfolio growth in Tallinn drove sales gains, with all sold apartments in Estonia achieving prices above valuation.

• Economic occupancy rate remained strong at 97.1%, stable quarter-over-quarter in both Finland and Estonia.

Financial highlights

• Revenue for the fiscal year to date was €14.1 million, with Q3 revenue at €4.9 million.

• Net rental income totaled €8.6 million for the period and €2.9 million for the quarter.

• Realized profit Q3: -€1.1 million (vs. €1.4 million); nine months: -€0.5 million (vs. €3.4 million), due to one-off refinancing costs.

• EPS for nine months: -€9.14 (vs. -€5.72); Q3: -€1.80 (vs. €0.96).

• Number of completed apartments: 2,097; under construction: 36.

Outlook and guidance

• FY 2023/24 revenue expected at €17.5–20.0 million; realized profit forecast at €0.3–1.0 million.

• Demand for affordable apartments in Finland is expected to remain strong, especially as housing benefit changes favor lower-rent units.

• In Tallinn, premium apartments in central locations continue to see robust demand and price growth, even amid market uncertainty.

• Management expects stable occupancy and net rental income in Finland, and positive rental market development in Tallinn.

• Uncertainties include inflation, interest rates, Ukraine war, and real estate market trends in Finland and Estonia.