Asuntosalkku (ASUNTO) Q4 2024 earnings summary

Executive summary

• Revenue increased 19.5% year-over-year to €20.1M, driven by strong apartment sales in Tallinn and stable operations in Finland, with comparable growth over 12%.

• Net rental income rose 9.3% to €12.3M, with a comparable increase of 3%.

• Economic occupancy rate remained high at 97.4% in both Finland and Tallinn.

• Realized profit was €0.8M, but the period ended with a net loss of €14.6M due to unrealized fair value losses and higher financing costs.

• Portfolio consists of over 2,080 completed apartments and 36 under construction, with a total fair value exceeding €260M.

Financial highlights

• Revenue exceeded €20M for the fiscal year, with a comparable figure just under €19M.

• Net rental income was over €12M, with a comparable figure of €11.6M.

• Adjusted EBITDA (operating cash flow) was €8.6M, with a comparable €8.1M.

• Equity per share was €121.84, down 10.8% year-over-year.

• Loan-to-value (LTV) ratio increased to 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.

• Anticipated continued demand for affordable apartments due to changes in housing subsidies and tighter personal finances.

• Rental cash flow expected to remain steady, with potential for rent increases in high-demand segments.