Catena (CATE) Q4 2024 earnings summary

Executive summary

• Rental income increased by 21% year-over-year to SEK 2,193 million, driven by acquisitions, project completions, and indexation.

• Profit from property management rose 14% to SEK 1,261 million, with per-share profit at SEK 22.59.

• Net reinstatement value (NRV) per share increased to SEK 425.

• Investment volume reached a record SEK 11 billion, reflecting long-term growth focus and significant expansion in Denmark.

• Economic occupancy rate remained high at 96.7%, with a WAULT of 6.7 years and a diversified tenant base.

Financial highlights

• Net operating income/surplus grew by 24% year-over-year.

• Like-for-like rental income growth was 7.6% for the year, mainly from CPI increases.

• Property values increased to SEK 41,558 million, up almost 35% compared to Q4 2023.

• EPRA net initial yield at 5.5%; average exit/valuation yield at 5.9%.

• Earnings capacity per share increased 15% to SEK 25.48.

Outlook and guidance

• Well-positioned for continued growth, supported by a strong balance sheet, robust cash flow, and a large land bank for future development.

• Nordic central banks signal economic support amid uncertain inflation, with opportunities for lower cost of capital.

• E-commerce segment returned to growth (+5% year-over-year), with strongest performance in pharmacy, fashion, and food.

• CPI indexation for 2025 is set at 1.6%.