Hufvudstaden (HUFV-A) Q4 2024 earnings summary

Executive summary

• Net revenue from property management rose 4% year-over-year to SEK 2,120 million, driven by indexation and new/renegotiated office leases.

• Gross profit from property management increased 6% to SEK 1,435 million, reflecting operational resilience despite a weak economy.

• Net result for the year improved to SEK 365 million from a loss of SEK -1,927 million, mainly due to lower negative unrealised property value changes.

• The Board proposes an increased dividend of SEK 2.80 per share, up from SEK 2.70.

• The fair value of property holdings reached SEK 47.1 billion, with EPRA NRV stable at SEK 185 per share.

Financial highlights

• Net revenue from property management (excluding intra-Group rents) was SEK 2,120.2 million, up from SEK 2,033.1 million year-over-year.

• Gross profit from property management was SEK 1,434.9 million, up from SEK 1,359.4 million.

• Net result for the year was SEK 364.6 million, a significant turnaround from SEK -1,927.2 million last year.

• Unrealised changes in property value were SEK -602.6 million, a marked improvement from SEK -4,042.4 million.

• Equity ratio remained strong at 59%, and net loan-to-value ratio was 21.4%.

Outlook and guidance

• Management notes a stable office market in Stockholm, though letting processes are longer; retail recovery is slow but positive signs are emerging.

• Several brands are seeking to establish in prime locations, anticipating improved household purchasing power in 2025.