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 income at SEK 22.59; NRV per share increased to SEK 425.

• Investment volume reached a record SEK 11 billion in 2024, reflecting a 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.

• 46% of lettable area is environmentally certified, with a target of 100% by 2030; Catena received the 'Logistics establishment of the year' award for Elgiganten.

Financial highlights

• Net operating income grew by 24% year-over-year to SEK 1,789 million.

• Like-for-like rental income growth was 7.6%, with M&A contributing 11% and project development 3.3%.

• Net debt/EBITDA at 7.9x, interest coverage ratio at 3.6x, and LTV at 38.4%.

• 70% of debt is classified as green, exceeding the 2025 target.

• EPRA NRV per share rose to SEK 425 (392); surplus ratio improved to 81.6%.

Outlook and guidance

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

• Earnings capacity for 2025 is projected to be 15% higher per share year-over-year.

• Central banks in Sweden and Denmark lowered policy rates, improving investment sentiment.

• CPI indexation for 2025 is set at 1.6%; no dramatic changes expected in vacancy or net letting.

• Ongoing projects expected to add 130,000 sq m to the portfolio, with a yield on cost of around 7%.