John Mattson (JOMA) Q2 2024 earnings summary

Executive summary

• Management profit grew by 50.8% year-over-year, with continued positive property value changes (+1.1% for the quarter).

• 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.

• Earnings after tax reached SEK 221.2 million, reversing a loss of SEK 464.7 million in the prior year.

• Sale of Fulufjället 1 residential property in Alvik at an underlying value of SEK 93 million, 5% above carrying amount.

• Partnership with Stockholm Exergi to reduce climate emissions and achieve net zero by 2033, with an initial SEK 57 million investment.

Financial highlights

• Q2 rental income was SEK 161.3 million, up from SEK 155.7 million in Q2 2023.

• Operating surplus increased to SEK 123.0 million from SEK 112.3 million year-over-year.

• Management profit reached SEK 55.1 million, up from SEK 28.9 million in Q2 2023.

• Property value increased by SEK 145.5 million in Q2, reversing last year's negative trend.

• Net profit for the period was SEK 215.6 million, compared to SEK 27.8 million in Q2 2023.

Outlook and guidance

• Attractive residential locations expected to remain strong, with positive rental and conversion potential.

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

• Management expects stable demand and low vacancy risk in attractive Stockholm locations.

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

• Profitability for conversions from rental to tenant-owned apartments is forecasted to increase.