Catena (CATE) Q2 2024 earnings summary

Executive summary

• Rental income increased 14% year-over-year to SEK 1,020 million, driven by acquisitions, project completions, and indexation.

• Profit from property management rose 4% to SEK 608 million, though per share it declined to SEK 11.46.

• EPRA NRV per share climbed to SEK 396 from SEK 364.23 year-over-year.

• Major acquisitions totaling SEK 3.7 billion, including DSV and Elgiganten projects, expanded the property portfolio by 16% since year-end.

• Letting ratio remains high at 96.2% with a WALE of 5.8 years.

Financial highlights

• Net operating surplus increased 14% to SEK 827 million year-over-year.

• Like-for-like rental growth was 6.6%, mainly from CPI-linked contracts, with acquisitions and project development contributing.

• Property value was written down by SEK 161 million in H1, but Q2 saw a positive SEK 38 million movement.

• Surplus ratio was 81.0%; economic occupancy rate at 96.2%.

• Profit for the period reached SEK 365 million, reversing a loss of SEK -35 million last year.

Outlook and guidance

• Management expects stronger cash flow and earnings capacity in coming quarters due to recent acquisitions and project completions.

• New project starts are most likely in southern Sweden and Gothenburg, with potential announcements in Q3.

• Investment levels will depend on project development success, with a preference for development over acquisitions.