Hufvudstaden (HUFV-A) Q2 2024 earnings summary

Executive summary

• Net revenue from property management rose 5% year-over-year to SEK 1,049 million, driven by indexation and new leases.

• Gross profit from property management increased 4% to SEK 701 million compared to the same period last year.

• Net result for the period was SEK -354 million, a significant improvement from SEK -1,372 million last year, mainly due to lower negative unrealised property value changes.

• The fair value of property holdings was SEK 46.2 billion, down from SEK 46.7 billion at year-end, reflecting negative unrealised value changes.

• Rental vacancy rate was 7.9%, or 5.8% excluding development projects, with ongoing leasing activity in key projects.

Financial highlights

• Net revenue from property management: SEK 1,049 million (SEK 1,004 million year-over-year).

• Gross profit from property management: SEK 701 million (SEK 675 million year-over-year).

• Net result: SEK -354 million (SEK -1,372 million year-over-year), or SEK -1.75 per share.

• Unrealised changes in property value: SEK -994 million (SEK -2,295 million year-over-year).

• Cash flow from current operations: SEK 521 million (SEK 558 million year-over-year).

Outlook and guidance

• Office rental market remains tentative, but demand for high-quality, centrally located properties is sustained.

• Lower inflation and interest rate cuts have improved confidence in the retail sector, with several brands expanding in key locations.

• Major projects, including Kvarteret Johanna in Gothenburg and Orgelpipan 7 in Stockholm, are progressing, with completions expected in 2026 and beyond.