FastPartner (FPAR) Stockholm Corporate Finance Conference 2024 summary

Market and financial overview

• Rental income increased by 4.0% in H1 2024, reaching SEK 1,153.2m, with net operating income up 2.3% to SEK 806.7m.

• Profit from property management for H1 2024 was SEK 326.6m, with a rolling annual profit of SEK 820m.

• Property value remained stable at SEK 33,765m, and net liabilities stood at 46.1%.

• Vacancy rate was 7.5% in H1, and three properties were sold for SEK 243.3m.

• Interest coverage ratio (ICR) improved to 1.8 in Q2 2024.

Strategic outlook and targets

• Bottom of the market cycle was reached in Q4 2023, with expectations for improvement as interest rates decline.

• A 25 bps rate cut would improve profit by SEK 32m; strategy focuses on short interest rate duration.

• Financial targets for 2025 include SEK 1,100m rolling annual profit, >10% annual profit growth per share, and >12% return on equity.

• At least 30% of loans to be fixed for over 3 years, green financing to reach 70% of total loans, and net loan-to-value ratio below 45%.

• Aim to achieve a credit rating of Baa1 and a surplus ratio of at least 75%.

Sustainability and operational initiatives

• Supports UN Global Compact and Sweden GreenBuilding Council, with 58% of property value environmentally certified.

• Reduced energy use by 5.7% and greenhouse gas emissions by 8% year-on-year.

• Social initiatives include providing jobs for over 1,500 youths and ongoing Great Place To Work certification.

• Targets >10% annual increase in certified properties and >15% annual reduction in CO2e emissions.

• 2030 goal is climate neutrality for Scope 1 and 2; 2045 for Scope 1, 2, and 3.