Hufvudstaden (HUFV-A) Q3 2024 earnings summary

Executive summary

• Net revenue from property management for Q3 2024 was SEK 1,583 million, up 4% year-over-year, driven by indexation and new/renegotiated leases.

• Gross profit from property management reached SEK 1,078 million, a 5% increase year-over-year.

• Net result for the period was SEK -211 million, a significant improvement from SEK -1,585 million, mainly due to lower negative unrealised property value changes.

• Customer satisfaction remained industry-leading for the seventh consecutive year.

• Fair value of properties stood at SEK 46.4 billion at the end of Q3 2024.

Financial highlights

• Gross profit for Jan–Sep 2024 was SEK 1,141 million, up from SEK 1,095 million for the same period last year.

• Net profit for Jan–Sep 2024 was SEK -211 million, compared to SEK -1,585 million for Jan–Sep 2023.

• Equity ratio at the end of Q3 2024 was 58%, net loan-to-value ratio at 21.7%, and interest coverage ratio at 4.4.

• Net result per share was SEK -1.04, compared to SEK -7.83 year-over-year.

• Unrealised changes in property value were SEK -1,094 million, a significant improvement from SEK -2,854 million.

Outlook and guidance

• Focus remains on strong assets in prime locations, development of marketplaces, and sustainability.

• Higher profit and good dividend growth are targeted over time.

• Signs of economic recovery are visible, with low inflation and improving household financial health.

• Tenants are expressing a more positive outlook, and activity in city centre retail is increasing.