Asuntosalkku (ASUNTO) Q4 2024 earnings summary

Executive summary

• Revenue increased by 19.5% year-over-year to €20.1M, driven by portfolio growth in Tallinn and stable operations in Finland.

• Net rental income rose by 9.3% to €12.3M, but the period ended with a net loss of €14.6M due to unrealized fair value losses and higher financing costs.

• Portfolio consists of 2,080 completed apartments and 36 under construction, with a 97.4% occupancy rate.

• Strong presence in growth centers, especially in Tallinn, with a focus on small, affordable rental units.

• Significant capital gains from Tallinn apartment sales, with sale prices exceeding valuation levels.

Financial highlights

• Revenue for the period was €20.1M (comparable: €18.9M), up 19.5% year-over-year.

• Net rental income reached €12.3M (comparable: €11.6M), up 9.3% year-over-year.

• Adjusted EBITDA was €8.6M (comparable: €8.1M).

• Portfolio fair value: €263.9M (Finland: €161.9M, Tallinn: €102.0M), down 3.3% year-over-year.

• Loan-to-value (LTV) ratio at 54.6%; equity ratio at 44.4%.

Outlook and guidance

• Revenue for the next fiscal year is expected to be €17.5–20.0M, with realized profit guidance of €1.5–3.5M.

• Management expects continued strong occupancy and stable net rental income.

• Positive impact anticipated from lower reference rates in 2025, but uncertainty remains due to economic and geopolitical risks.

• Continued focus on optimizing rental yields and portfolio structure by region.

• Ongoing development in Tallinn with 36 apartments under construction.