Corem Property Group (CORE) Q4 2024 earnings summary

Executive summary

• Achieved positive net letting in 2024 despite a challenging rental market, with a continued focus on financial stability and operational efficiency.

• Portfolio consists of 289 properties across 12 cities, valued at SEK 55 billion, with a lettable area of 2,268,000 sq.m.

• Maintained strong customer satisfaction (NKI 75, up 3 points) and a proven track record in sustainability and property development.

• Net income for 2024 was SEK -1,058 million, a significant improvement from SEK -7,999 million in 2023.

• Net letting was positive at SEK 61 million for the year, despite a negative SEK 38 million in Q4 due to a major tenant exit.

Financial highlights

• Income for 2024 reached SEK 3,695 million; profit from property management was SEK 914 million.

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

• NAV per ordinary share of Class A/B was SEK 15.97.

• Economic occupancy rate stood at 86%.

• Average yield was 6.0%; average interest rate was 4.6%.

Outlook and guidance

• Focus remains on improving occupancy rate, operating margin, and optimizing financial structure.

• Selective approach to new projects, prioritizing those that support new lettings and environmental goals.

• ICR expected to improve going forward, with continued attention to liquidity and debt reduction.

• Entering 2025 with a strengthened financial position and clear strategy to address market challenges and maximize shareholder value.

• Management expects improved conditions as interest rates and inflation stabilize, with hopes for economic recovery in 2025.