Diös Fastigheter (DIOS) Q4 2024 earnings summary

Executive summary

• New CEO David Carlsson presented his first interim report, emphasizing predictable profitability and long-term shareholder value, with a focus on growth and resilience in northern Sweden.

• 2024 featured active portfolio management, including divestment of non-core assets and strategic acquisitions, improving portfolio efficiency.

• Economic occupancy rate declined to 91% at year-end, mainly due to divestments.

• Board proposes a dividend of SEK 2.20 per share in four installments and updates the dividend policy to support future investments.

• Long-term outlook remains robust, supported by the green transition and resilient rental market.

Financial highlights

• Q4 2024 income was SEK 632m, operating surplus SEK 414m, and profit after tax SEK 83m, all impacted by divestments and one-offs.

• Like-for-like rental growth was 1.6% year-over-year, supported by indexation and rent reversion.

• Net letting was positive at SEK 10m in Q4 and SEK 32m for the full year.

• Market value of properties stood at SEK 31.4bn; SEK 930m invested in projects during Q4.

• Dividend proposal of SEK 2.20 per share, in four instalments.

Outlook and guidance

• Board updated dividend policy to pay about one third of annual property management income, subject to investment needs.

• Expectation of a turnaround in vacancies in H2 2025 as new projects are completed and tenants move in.

• Anticipate continued rental growth, especially in prime cities benefiting from the green transition.

• Guidance for stable or rising rental levels and positive net letting, with no major risks from upcoming lease renewals.

• No major new office projects planned; expected reduction in temporary vacancies as market demand remains robust.