Atrium Ljungberg (ATRLJ) Q2 2024 earnings summary

Executive summary

• Strong net letting and stable growth in property management income, with profit from property management up 12–13% in Q2 and H1, driven by demand for quality offices in attractive locations.

• Property portfolio is concentrated in Stockholm, with 80% of value and 69% in offices.

• Major property sales in Sundbyberg for over SEK 2.1 billion reduced office share and financial risk, supporting urban development projects.

• Ongoing projects total SEK 8.4 billion, with 94% of 2024 completions already let.

• Focus on sustainability, with Sickla Central achieving BREEAM-SE Outstanding certification.

Financial highlights

• Profit from property management increased by 12–13% in Q2 and H1; net operating income up 6–7% for comparable portfolio.

• Rental income for Jan–June 2024 was SEK 1,508m, up 5% in a comparable portfolio.

• Net letting for Q2 was SEK 97m; for H1, SEK 69–97m.

• Net loss in property value of SEK 39–46 million in Q2.

• Long-term net asset value per share at end of Q2 was SEK 265.

Outlook and guidance

• Market expects interest rate cuts, supporting a more optimistic housing market and continued resilience.

• Revenue increases of 5% primarily due to KPI index; costs up only 0.3%.

• Rental income from project portfolio expected to reach SEK 120 million in 2024, up from SEK 44 million in 2023.

• Ongoing and future projects in key Stockholm areas expected to drive further growth.

• Strong liquidity buffer over SEK 9 billion and robust risk management support outlook.