Atrium Ljungberg (ATRLJ) Q4 2024 earnings summary

Executive summary

• Rental income for 2024 rose to SEK 2,988 million, up 5.9% year-over-year, with a 3.9% increase in the comparable portfolio.

• Net operating income reached SEK 2,150 million, up 6.6% year-over-year, with a 4.3% increase in the comparable portfolio.

• Income from property management increased by 4.4% to SEK 1,425 million, despite higher financing costs.

• Investments totaled SEK 2,692 million, with SEK 411 million in acquisitions and SEK 2,148 million in property sales.

• Property and project portfolio concentrated in four main Stockholm areas, all with current or future underground stations.

Financial highlights

• Profit from property management grew 4% in 2024 to SEK 1,425m (SEK 11.30/share); Q4 profit down 8% to SEK 315m (SEK 2.50/share).

• Net operating income like-for-like up 4% in 2024; operating surplus up 1% in Q4 like-for-like, excluding one-offs.

• Unrealised changes in property values were SEK -272 million for the year, a smaller loss than SEK -1,658 million in 2023.

• Loan-to-value ratio at year-end was 41.4%, down from 42.5% last year.

• Rental income and operating surplus increased across all segments: offices (+4.6%/+5.0%), retail (+2.4%/+2.6%), residentials (+4.4%/+4.6%).

Outlook and guidance

• Economic recovery in Sweden is expected to accelerate in 2025, though weak rental demand may persist.

• Ongoing projects valued at SEK 9.5bn, with SEK 4.4bn remaining to be invested, primarily in Stockholm's development areas.

• Three commercial projects completing in late 2025 will have a greater impact in 2026.

• Proposed dividend of SEK 3.60 per share, distributed in two installments, representing a 32% payout ratio.

• Sustainability goals approved by the Science Based Targets Initiative; climate-neutral by 2030 and net zero by 2040.