John Mattson (JOMA) Q2 2024 earnings summary

Executive summary

• Income from property management grew 50.8% year-over-year, reaching SEK 87.8 million, driven by efficiency improvements and lower interest expenses.

• Rental revenues increased 3.0% to SEK 318.8 million for Jan–Jun 2024, with net operating income up 5.3% to SEK 224.6 million.

• Property value at period-end was SEK 13,634.0 million, with a 1.1% increase in value for the quarter.

• Profit for the period was SEK 215.6 million, compared to a loss of SEK 464.7 million in the prior year.

• Surplus ratio improved to 76.2% in Q2, up four percentage points year-over-year.

Financial highlights

• Q2 2024 rental revenues were SEK 161.3 million, up from SEK 155.7 million in Q2 2023.

• Net operating income increased to SEK 123.0 million from SEK 112.3 million year-over-year.

• Income from property management in Q2 was SEK 55.1 million, up from SEK 28.9 million.

• Changes in property values contributed SEK 72.5 million for Jan–Jun, compared to a loss of SEK 617.9 million last year.

• Surplus ratio was 76.2% in Q2, 70.4% for Jan–Jun.

Outlook and guidance

• Rent negotiations for 2024 resulted in average increases of 5.1–5.2% for residential properties.

• Housing in attractive locations is regaining strength, with positive rent and conversion potential.

• Rent adjustments are forecast to align with inflation, supporting stable revenue growth.

• Profitability for conversions to tenant-owner apartments is expected to increase if yield requirements remain stable.

• Transaction market activity is reviving, supported by policy rate cuts and improved financing access.