Corem Property Group (CORE) Q3 2024 earnings summary

Executive summary

• Portfolio consists of 294 properties valued at SEK 56bn, with a lettable area of 2,304 tsq.m and rental value of SEK 4,346m.

• Income for Jan–Sep 2024 was SEK 2,780m, down from SEK 3,228m year-over-year, mainly due to property divestments; profit from property management was SEK 736m (1,016).

• Net loss for the period was SEK -268m, a significant improvement from SEK -4,934m year-over-year, with earnings per share at SEK -0.62 (-4.91).

• Net letting reached SEK 99m for Jan–Sep 2024, with strong activity in Stockholm, Kista, and New York.

• Financial flexibility was enhanced via a SEK 1bn share issue and SEK 1.3bn in new green bonds.

Financial highlights

• Operating surplus for Jan–Sep was SEK 1,808m (2,250); operating margin at 65% (70%).

• Comparable portfolio income increased by 3% year-over-year.

• Net financial income improved to SEK -950m (-1,098) due to reduced interest-bearing liabilities.

• Changes in property values were SEK -473m (-5,823) for the period, with SEK 12m (-2,912) in Q3.

• NAV per ordinary share (A/B) was SEK 16.56 (17.57) as of 30 Sep 2024.

Outlook and guidance

• Emphasis on improving occupancy rate and operating margin.

• Management expects a more favorable macroeconomic environment with falling interest rates and improved capital market liquidity.

• Anticipated further interest rate cuts are expected to benefit the real estate market and support strategy in metropolitan and growth areas.

• Continued focus on a stronger, more flexible balance sheet and selective new projects.

• Well-positioned portfolio in attractive locations with development potential.