Catena (CATE) Q3 2024 earnings summary

Executive summary

• Rental income increased 17% year-over-year to SEK 1,566 million, driven by acquisitions and indexation.

• Profit from property management rose 7% to SEK 911 million; per share, it was SEK 16.78, temporarily lower due to recent acquisitions.

• Major acquisition of DSV Horsens in Denmark for SEK 5 billion, now the largest tenant, accounting for 20% of contractual value.

• Fitch upgraded credit rating to BBB with a stable outlook, reflecting improved financial strength.

• Two share issues raised SEK 5.2 billion, supporting acquisitions and strengthening the balance sheet.

Financial highlights

• Net operating surplus increased 17% year-over-year to SEK 1,276 million.

• EPRA NRV per share rose to SEK 416, up almost 5% from the previous quarter.

• Loan-to-value ratio at 37.6%, with an equity ratio of 51.1%.

• Net debt/EBITDA at 8.2x, ICR at 3.7x, both within policy limits.

• Property value increased to SEK 40.8 billion, with Denmark now 18% of the portfolio.

Outlook and guidance

• Management expects strong cash flow and further earnings growth due to recent acquisitions.

• Capital structure supports continued profitable growth strategy.

• Market conditions are favorable for further growth, with optimism about a more stable property market and increased transaction activity.

• Targeting around 7% yield on cost for new developments.

• Positive sentiment and increased project discussions, especially outside Stockholm Mälardalen.